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DEC 



^983 



NORTH CAROLINA 

REGISTER 



g^s^ U&^'^^^'' 



IN THIS ISSUE 



EXECUTIVE ORDER 



/^ 



PROPOSED RULES 

Administration 

Economic and Community Development 

Education 

General Contractors 

Insurance 

FINAL RULES 

List of Rules Codified 

ISSUE DATE: DECEMBER 1, 1989 



Volume 4 • Issue 1 7 • Pages 826-856 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislati\e and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrati\e rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise appro.ximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
\ided free of charge to each county in the state and to 
\arious state officials and institutions. The North CaroHna 
Register is available by yearly subscription at a cost of 
one hundred and five dollars (S105.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 1 1666, Raleigh, N. 
C. 27604, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment \*.hich is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Division of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the Nortli Carolina Registerheiore the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrative Rules Re\iew Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administratixe Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted \'ersion will again be published in the 
North Caroli)ia Register. 

A rule, or amended rule cannot become effecti\e 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrati\'e Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at an)- time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary- rules. A temporary 
rule becomes effecti\e when adopted and remains in 



effect for the period specified in the rule or 180 day; 
whichever is less. An agency adopting a temporary rul 
must begin normal rule-making procedures on the pei 
manent rule at the same time the temporary rule 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) 
a compilation and index of the administrati\-e rules c 
25 state agencies and 38 occupational licensing board: 
The NCAC comprises approximately 15,000 letter sizi 
single spaced pages of material of which approximati 
ly 35 "o is changed annually. Compilation and public, 
tion of the NCAC is mandated by G.S. 150B-63(b) 

The Code is di\'ided into Titles and Chapters. Eac 
state agency is assigned a separate title which is fu 
ther broken down by chapters. Title 21 is designate 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minima: 
cost of two dollars and 50 cents ($2.50) for 1 
pages or less, plus fifteen cents (SO. 15) per eac 
additional page. 

(2) The full publication consists of 52 volume 
totaling in excess of 15,000 pages. It is su 
plemented monthly with replacement pages 
one year subscription to the full publication i 
eluding supplements can be purchased fi 
seven hundred and fifty dollars ($750.00). I 
di\idual volumes may also be purchased wi 
supplement service. Rene\\'al subscriptions f 
supplements to the initial publication availab 

Requests for pages of rules or volumes of the NC^ 
should be directed to the Office of Administrati 
Hearings. 

NOTE 

The foregoing is a generalized statement of the pr 
cedures to be followed. For specific statuton,' languaj 
it is suggested that Articles 2 and 5 of Chapter 150B 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by \olume, issi 
page number and date. 1:1 NCR 101-201, April 1, 19 

refers to Volume 1, Issue 1, pages 101 through 201 
the North Carolina Register issued on April 1, 198' 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. Drawer 
11666, Raleigh, North Carolina 27604, pursuant to 
Chapter 150B of the General Statutes. Subscriptions 
one hundred and five dollars ($105.00) per year. 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement service by 
the Office of Administrative Hearings, P.O 
Draw^er 1 1666, Raleigh, North Carolina 27604, pur 
suant to Chapter 150B of the General Satutes 
Subscriptions seven hundred and fifty dollar; 
($750.00). Individual volumes available. 



NORTH 
CAROLINA 
REGISTER 



ISSUE CONTENTS 




Office of Administrative Hcarins^s 

P.O. Dniwcr Il6(>(t 

Rakis^h. .\C 2^6114 

(')!<)) 7.?J- 2678 



Julian Mann, III 

Diicclor 
James R. Scarcclla Sr., 

Depitly Director 
Molly Masich, 

Director A PA Services 



I. EXECUTIVE ORDER 

Ixecutivc Order 98 826 

II. PROPOSED RULES 

Administration 

State Construction 827 

Economic and Commnnity 
Development 

Hazardous Waste 

Management Commission 835 

Milk Commission 834 

Education 

1 lementar) and Secondar\ 843 

Insurance 

Admission Requirements 836 

Licensing Boards 
(jcncral (Contractors 844 

III. EINAL RULES 

List of Rules Codified 847 



Staff: 

Ruby Creech, 

PuhlicalioHs Coordinalor 
Teresa Kilpatrick, 

Editorial A ssislaiil 
Jean Shirley, 

Edilnrial Assistant 



IV. CUMULATIVE INDEX 854 



NORTH CAROLrSA RKGISTER 

Publication Deadlines and Schedules 

(January 1989 - May 1990) 



Issue 


I ast Day 


Last Dav 


Carlicst 


+ 


Date 


for 


for 


Date for 


Earliest 




Filing 


Electronic 


Public 


rffectivc 






r-iling 


Hearing & 
Adoption by 
Agency 


Date 


*++¥++++ 


+*++*+** 


+++♦**++ 


++++++++ 


+ + + + + + *■( 


12/01/89 


1 1 07'89 


1115 89 


12 31/89 


04/01/90 


12/15 89 


11 22,89 


12 01 89 


01 14 90 


04 01 90 


01/02,90 


12 07/89 


12/14 89 


02 01 90 


05/01,90 


01/16,90 


12 20 89 


12/29 89 


02 1 5 90 


05 01 90 


02/01/90 


01,10,90 


01/18,90 


03, 03 90 


06 01,90 


02/15,90 


01/25/90 


02 01 90 


03,17/90 


06 01 90 


03/01,90 


02/08/90 


02/15/90 


03 31/90 


07/01 90 


03/15,90 


02'22,'90 


03 01 90 


04 14 90 


07/01,90 


04 02 90 


03/12,90 


03/19 90 


05 02/90 


08 01 90 


04, 16,90 


03/23/90 


03/30/90 


05/16/90 


08 01,90 


05,01,90 


04 09/90 


04 17 90 


05 31,90 


09/01,90 


05/15/90 


04 '24 '90 


05/01/90 


06/14/90 


09,'01,90 



* The "Earliest Effecth'e Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date", that the agency files the rule with The Admiitistrative Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the n-ile at the next calendar month tncetjng. 



EXECUTIVE ORDER 



EXKCMIVK OKDKK MMUKR 98 
HURRICANE III CO RKIIEF 

\VIIERI*-AS, I have proclaimed that a State of 
disaster exists in certain areas of North Carolina 
due to the effects of IFurricane Hugo; and 

WlILvREAS, a State of emergency has been de- 
clared in the State of South Carolina and the 
Governor of South Carolina has requested that 
the State of North Carolina temporarily waive 
weight restrictions on the gross wciglu of trucks 
transporting trees and by-products from the dis- 
aster caused by Hurricane Hugo and weight and 
license requirements thereon; and 

WHEREAS, pursuant to Chapter 166A, the 
North Carolina Emergency Management Act, 
and by the authority vested in me as Go\emor 
of the State of North Carolina by the Constitu- 
tion and laws of this State, and with the concur- 
rence of the Council of State; and 

WHEREAS, for the purpose of relie\ing human 
suffering caused by Hurricane Hugo it is OR- 
DERED; 

Section 1: That for a period of time beginning 
immediately until 4 December 1989 the State of 
North Carolina under the supervision and direc- 
tion of the Department of Transportation and 
Division of Motor Vehicles will waive weiglit re- 
strictions on the gross weight of vehicles trans- 
porting trees and by-products coming out of the 



State of South Carolina subject to the following 
conditions: 

(1) Vehicle weight will not exceed the maxi- 
mum gross vehicle weight criteria estab- 
lished by the manufacturer. 

(2) I'he vehicles will be allowed only on pri- 
mary and interstate routes to be desig- 
nated by the Department of 
Transportation. 

(3) The vehicles will, upon entering the State 
of North Carolina stop at the first avail- 
able vehicle weight station and produce 
identification sufficient to establish that 
the load contained thereon is part of the 
Hurricane Hugo relief effort. 

Section 2: The vehicle described above will be 
exempt from the vehicle licensing and tax re- 
quirements of N.C.G.S. 105, Subchapter 5, Arti- 
cle 36B. 

Section 3: The North Carolina Department of 
Transportation shall enforce the conditions set 
forth in Section 1 and Section 2 in a manner in 
which would best accomplish the implementa- 
tion of this rule without endangering the motor- 
ists on North Carolina highways. 

This Order is effective immediately and shall 
remain in effect until December 4, 1989. 

This the 3rd dav of November 1989. 



NORTH CAROLINA REGISTER 



S26 



PROPOSED RULES 



in !,i: I DKPAR IMKM OF 
ADMIMSIRAIION 



No 



oticc is hereby given in accordance with G.S. 
I SOB- 1 2 that the Department of Administration 
intends to amend rnle(s) cited as 1 NCAC 30A 
.0301: I \CAC30D .0/0/ - .0/03, .020/ - .0202. 
.030/ - .0304. .0306: / SCAC 30E .0/0/ - .0/03, 
.020/ - .0202. .030/ - .0302. .0304 - .0306. .0402. 



Th 



he proposed effect ri'e date of this action is .4pri/ 
/, /990. 

1 he pub/ic hearing wi// be conducted at / :00 
p.m. on ./anuary 23. /990 at Large Conference 
Room. State Construction Office, Legislati\-e Of- 
fice Building, Room 403. 300 A'. Salisbury Street, 
Raleigh, \orth Carolina 276//. 

C omment Procedures: Any interested person 
may present his. her comments either in writing 
prior to or at the hearing or orally at t/ie /waring. 
Any person may request information, permission 
to be heard - or copies of the proposed regulations 
by writing or calling Dtnid .McCoy. Department 
of Administration. / /6 West Jones Street, 
Ra/cig/i. X.C. 27603-S003 (Q/9j 733-6SSS. 

CHAPTER 30 - STATE CONSTRUCTION 

SUBCHAPTER 30A - DIMSION OV STATE 
CONSlRUCnON 

SEC I ION .0300- 

ARCHITECTURAI./ENGINEERING REMEW 

OEEICE 

.0.301 RESPONSMJII.niES 

Responsibilities of tliis office include re\ic\v of 
all plans and specifications recei\ed from design- 
ers or consultants and state agencies for capital 
improvement projects; consultation and coordi- 
nation of reviews with other agencies; coordi- 
nation, communication and assistance with other 
offices in the division of state construction; and 
providing consulting assistance to state agencies. 



Staiuton' .4uthoritv G.S. 
/43-34/'i 3): /43/i-/0:' /43/i-370. 



/ 43-/ 35. 26: 



SUHCFIAPIER 301) -STATE lU II niNG 

COMMISSION DESI(;NER .\M) CONSl LIANI 

SEUECTION POUICY 

SECTION .0100 - GENER.\U PROVISIONS 

.0101 AUTHORITY 



The State Building ("ommission, hereinafter re- 
ferred to as S15C, is a statutory bod>', empowered 
by Public I^w to perform a multiplicity of duties 
with regard to the State's (Capital I'acihties De- 
velopment and Management Program. In the 
specific area of state capital improvement project 
design selection, the SBC is empowered to adopt 
rules establishing standard procedures and criteria 
to assure that the designer selected for each state 
capital improvement project and the consultant 
selected for planning and studies ot an architec- 
tural and engineenng nature associated with a 
capital impro\cment project or a future capital 
improvement project has the quahfications and 
experience necessar.' for that capital improve- 
ment project or the proposed planning or study 
project. The SBC is responsible and accountable 
for the final selection of the designer and the final 
selection of the consultant. The exceptions are 
The University of North Carolina and the Gen- 
eral Assembly which shall be responsible and 
accountable for the final selection of designers 
and the final selection of consultants for capital 
projects in which they are the funded agencies. 

Statutor)' Authority G.S. /43-/35.25: /43-/35.26. 

.0102 POUICY 

It is the policy of the SBC to select designers 
and consultants for capital improvement projects 
as defmed in G.S. 143-135.27, based on criteria 
contained herein and to make available to every 
designer and consultant duly licensed to practice 
in North Carohna, the opportunity to be con- 
sidered for providing professional services for 
those departments and agencies under its juris- 
diction. The SBC considers that the selection 
of competent designers and consultants is vital to 
providing the State of North Carolina with best 
and most appropriate facilities consistent with 
authorized funds. Ihese procedures are intended 
to provide a basis for the fair and uniform se- 
lection of designers and consultants. I hesc pro- 
cedures for defined projects are intended to be 
consistent with the 19S7 N'.Cl Session Laws 102. 
Projects not covered by this policy shall also be 
consistent with the 1987 N.C. Session Laws 102. 

Statuioiy Authority G.S. / 43-/ 35. 25: / 43-/ 35. 26. 

.0103 HEFINITIONS 

For purposes of this Subchapter, the following 

definitions shaU apply: 

(1) ".Annual Service Agreement" means an 

open end agreement for professional services 

with a designer or consultant, subject to the 

limitations of this policy, for the provision 



S27 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



of small miscellaneous and/or urgent design 
services. 

(2) "Capital Projects Coordinator" means the 
individual authorized by each funded agency 
to coordinate all capital improvement pro- 
jects and related matters with the State 
Construction Office and to represent that 
agency on all matters presented to the SBC. 

The individual so designated for purposes 
of these Rules may have other titles within 
his agency but shall carr>' out the duties as- 
signed herein to the Capital Projects Coor- 
dinator. Whenever the Capital Projects 
Coordinator is referenced herein, it shall be 
understood to include a designated assistant 
or representative. 

(3) "Designer" means any individual, firm, 
partnership, corporation, association or 
other legal entity pL ' rmilted W ktvr licensed 
to practice architecture, engineering, or 
landscape architecture in the State of North 
Carolina. 

(4) "Consultant" means anv individual, firm, 
partnership, corporation, association or 
other legal entil\ selected for planninu and 
studies of an architectural and engineenng 
nature associated with a capital impro\e- 
mcnt project. Ihc consultant must he H^ 
censed to practice architecture or engineering 
in the State of North Carolina. 

(5) f4| "Contact person" means the person 
named in the public advertisement who shall 
be the Capital Projects Coordinator or liis 
designee. 

(6) (4^ "bunded agency" means the depart- 
ment, agency, authority, or ott'ice that is 
named in the legislation appropriating funds 
for the design and/or construction project. 

(7) f6^ "Major projects" means those capital 
impro\ement projects whose authorized 
funding or estimated cost is greater than five 
hundred thousand dollars ($500,000.00) or 
a planning study activity whose authorized 
funding is greater than fifty thousand dollars 
($50,000.00). 

(S) (44 "Minor projects" means those capital 
improvement projects whose authorized 
funding or estimated cost is five hundred 
thousand dollars ($500,000.00) or less or a 
planning or study activity whose authorized 
funding^is fifty thousand dollars ($50,000.00) 
or less. Minor projects may also include a 
grouping of small non-specified or antic- 
ipated projects whose aggregate total falls 
within the minor project cost limitations. 

(9) fK) "Professional senices" means those 
services within the scope of the practice of 



architecture, engineering or landscape archi- 
tecture as defined by the public laws of 
North Carolina. 
(10) (^ "Using agency" means the sub-division 
of the funded agency for whose use the pro- 
ject is to be provided. If the funded agency 
is so subdivided for administrative control, 
the using agency would be a division, ge- 
ographically self-contained facility, campus, 
or similar body, as determined by the ad- 
ministrative head of the funded agency. 

Statutory Authority G.S. 143-135.25; 143-135.26. 
SKCTION .0200 - I'RO.rKCT INKOKMATION 



.0201 PROJECT DESCRIPTION 

It shall be the responsibility of each Capital 
Projects Coordinator to provide the State Con- 
struction Office with a written description of the 
professional services desired, the program or 
scope of work, schedule requirements, amount 
of authorized funds and other appropriate infor- 
mation for each project requiring professional 
services. This information should be provided 
to the State Construction Office seven days prior 
to the publication dates of the first and fifteenth 
of each month for the North Carolina Purchase 
Director}'. Ihe Capital Projects Coordinator is 
responsible for prompt initiation of the designer 
or consultant selection process to enable the 
completion of designer or consultant selection 
with 60 days of the date ef tht» above notification. 
funds arc appropriated for a project by the Gen- 
eral Assembh' or the date of project authori- 
zation by the Director of the Budget. The State 
Buildinu Commission may izrant an exception to 
this requirement upon wntten request of the 
funded agency if 

( 1 ) no site was selected for the project before 
the funds were appropriated: or 

(2) funds were appropriated for advance plan- 
ning onh'. 

Statutory .hithority G.S. 143-135.25; 143-135.26. 

.0202 I'LBIIC AWOl NCEMEM 

Based upon project infonnation furnished by a 
Capital Projects Coordinator, the State Con- 
struction Office shall publish an announcement 
of the need for professional services, a designated 
contact person in the using agency and the clos- 
ing date in the North Carolina Purchase Direc- 
tor\'. Public announcement is required prior to 
designer or consultant selection except in the 
c\ent of emergency. In the e\ent of an emer- 
gency, public announcement is not required and 



NORTH CAROLINA REGISTER 



,S2S 



PROPOSED RULES 



the procedure outlined in Rule .0302 (4) of this 
policy will be followed. 

On projects, the closing date for being consid- 
ered for professional ser\ices shall not be less 
than ten days for minor projects and 15 days for 
major projects nor more than 21 days from date 
of publication in the I'urchase Director)'. 

A letter of interest for each project must be re- 
ceived by the contact person prior to a designer's 
being considered for professional services. 

Staiutoty Auihohiy G.S. 143-135.25: 143-135.26. 

SFXl ION .0300 - SEI.KCTION OF DESIGNERS 
OR CONSLLT.WTS 

.0301 DESIGNER OR CONSl I I AN T 
Ql AI.IKICAIIONS 

All designers or consultants desiring to provide 
professional services shall file with the State 
Construction Office a Federal Standard T-orm 
254 by January 1 of each year. Qualifications 
ma>' be submitted any time during the year; but, 
during January of each \ear, all submissions 
older than 12 months ma\ be destroyed. 

In response to a specific project announcement, 
the designer or consultant may submit a new or 
updated Standard lorm 254 or other information 
requested by the State Construction OtTice. De- 
signer or consultant qualifications must be on file 
or submitted to the State Construction Office 
prior to being considered by the pre-selection 
committee. 

Statutory Authority G.S. 143-135.25: 143-135.26. 

.0302 PRESELECTION 

A pre-selection committee shall be established 
for all projects requiring professional service. 
On minor projects, the pre-selection committee 
shall consist of at least the Capital Projects Co- 
ordinator, a representative of the using agency 
and one representative from the State Con- 
struction Office. On major projects the pre-se- 
lection committee shall consist of at least the 
Capital Projects Coordmator. a representative of 
the using agency and two represcntati\cs from 
the State Constmction Office. At least one 
member of all pre-selection committees shall be 
a licensed design professional. 
(1) General Procedure for All Projects: The 
Capital Projects Coordinator shall rc\iew 
with the using agency the requirements of 
the project. I'his step should normally take 
place prior to public advertisement in the 
Purchase Director)', because designers and 
consultants ha\'e a significant need to know 
in ad\'ancc the program intent of a project 
in order to demonstrate their qualifications 



for the project in their letter of interest. Ihe 
Capital Projects Coordinator shall receive 
all letters of interest and other qualification 
information either directly or from the des- 
ignated contact person. After a pre-selection 
priority list is prepared, the list will remain 
confidential e.xccpt to the Secretar)' of the 
SBC. If fewer than three letters of interest 
are received on major projects, the project 
will be readvertised in the Purchase Direc- 
tor)'. If fewer than three letters of interest 
are received following the re-advertisement, 
the Capital Projects Coordinator may pro- 
ceed with the selection process using the 
data received or may advertise again. 

(2) Special Procedures for Minor Projects: The 
Capital Projects (Coordinator shall again re- 
view with the using agency the requirements 
of the project and the qualifications of all 
firms expressing interest in a specific project. 
The Capital Projects Coordinator and a re- 
presentative of the using agency shall meet 
with the representati\'e from the State Con- 
struction OtTice for the e\aluation of each 
firm and development of a list of three firms 
in priorit)' order to be presented to the SBC. 
The Capital Projects Coordinator may in- 
stitute the interview procedures, under major 
projects, where special circumstances dictate 
such need. The Capital Projects Coordina- 
tor shall submit to the Secretary of the SBC 
the list of three firms in priority order, in- 
cluding pre-selection information and writ- 
ten recommendations, to be presented to the 
SBC. The Capital Projects Coordinator 
shall state in the submission to the SBC that 
the established rules for public announce- 
ment and pre-selection have been followed 
or shall state full particulars if exceptions 
have been taken. 

(3) Special Procedures for Major Projects: The 
pre-selection committee shall review the re- 
quirements of a specific project and the 
qualification of all turns expressing interest 
in that project and shall select from that Ust 
not more than six nor less than three firms 
to be interviewed and e\aluated. The pre- 
selection committee shall inter\'iew each of 
the selected firms, evaluate each firm inter- 
viewed, and rank in order tluce firms. 1 he 
Capital Projects Coordinator shall state in 
his submission that the established rules for 
public announcement and pre-selection have 
been followed or shaU state full particulars 
if exceptions have been taken. 

(4) Special Procedures for F.mergency Projects: 
On occasion, emergency design or consult- 
ant scr\'ices may be required for restoration 



829 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



or correction of a facility condition which 
by its nature poses a significant hazard to 
persons or property, or when an emergency 
exists. Should this situation occur, in all 
likelihood there will not be sufficient time to 
follow the normal procedures described her- 
ein. The Capital Projects Coordinator on 
these rare occasions is authorized to declare 
an emergency, notify the State (Construction 
Office and then obtain the services of a 
competent designer or consultant for con- 
sultation or design of the correcti\e action. 
In all cases, such uses of these emergency 
powers will involve a written description of 
the condition and rationale for employing 
this special authority signed by the head of 

- the agency and presented to the SBC at its 
next normal meeting. Timeliness for obli- 
gation of funds or other non-hazardous or 
non-emergency situations do not constitute 
sufficient grounds for invoking this special 
authority. 

(5) Annual Contract: A Funded Agency or a 
Using Agency may require the services of 
designer(s) or consultant(s) for small mis- 
cellaneous projects on a routine basis. In 
such cases, designer(s) or consultant(s) for 
annual contracts will be selected in accord- 
ance with the above procedures for minor 
projects. In addition, no annual contract fee 
will exceed fifty thousand dollars 
($50,000.00) in total volume and no single 
fee shall exceed ten thousand dollars 
($10,000.00). 

Statutory Authority G.S. 143-135.25; 143-135.26. 

.0303 SELFXTING CRITERIA 

In selecting the three firms to be presented to 
the SBC, the prc-sclcction committee should take 
into consideration such factors as: 

(1) Specialized or appropriate expertise in the 
type of project. 

(2) Past pcrfonnance on similar projects. 

(3) Adequate staff and proposed design or 
consultant team for the project. 

(4) Current workload and State projects 
awarded. 

(5) Proposed design approach for the project 
including design team and consultants. 

(6) Recent experience with project costs and 
schedules. 

(7) Construction administration capabilities. 

(8) Proximity to and familiarity with the area 
where project is located. 

(9) Record of successfully completed projects 
without major legal or technical problems. 



(10) Other factors that may be appropriate for 
the project. 

Statutory Authority G.S. 143-135.25; 143-135.26. 

.0304 DESIGNER OR CONSUETANT 
SEIECTION FOR LNC SYSTEM 
I'RO.IECTS 

In selecting designers or consultants for its pro- 
jects, the UNC system shall comply with the 
preceding policies and pre-selection procedures, 
except that pre-selection committees need not 
include a representative of the State Construction 
Office. The UNC system shall establish its own 
procedures for final designer or consultant se- 
lection, rhese procedures shall correspond in 
form to those established below for other than 
UNC system projects and shall be fded with and 
approved by the SBC. 

Statutory Authority G.S. 143-135.25; 143-135.26. 

.0306 CONTRACT NEGOTIATION 

y\fter the three have been notified of the se- 
lection action by The University of North Caro- 
lina or the SBC, a representati\e from the State 
Construction Office, the Capital Projects Coor- 
dinator, and a representative from the using 
agency will discuss with the selected designer or 
consultant appropriate information about the 
project, the scope of services to be provided and 
the state design/review/construction process. 

The State Construction Office will request in 
writing a detailed fee proposal from the selected 
designer or consultant. The State Construction 
Office in coordination with the Capital Projects 
Coordinator and the using agency will attempt 
to negotiate a fair and equitable fee consistent 
with the project program and the professional 
services required for the specific project. In the 
event a fee cannot be agreed upon, the State 
Construction Office shall terminate the negoti- 
ations and shall repeat the notification and ne- 
gotiation process with the next ranked firm on 
the selection list. In the event a fee cannot be 
agreed upon with the second-ranked designer or 
consultant, the process v\ill be repeated with the 
third-ranked designer or consultant. If a fee still 
cannot be agreed to, the SBC shall review the 
liistoPi of negotiations and make appropriate de- 
terminations including program adjustments so 
as to lead to a negotiated contract with one of the 
original three firms selected. Such renegotiation 
with the firms shall be carried out in the original 
selection order, or call for the Capital Projects 
Coordinator to submit another list of three firms 
in priority order to the SBC or to the UNC sys- 
tem. The negotiation process will continue until 



NORTH CAROLINA REGLSTER 



830 



PROPOSED RULES 



a fee has been determined that is agreed to hy the 
State Construction Ottlee, the using agency, and 
the designer or eonsuhant. Annua! contracts are 
subject to special management procedures de- 
scribed herein. Normally, the initial tee negoti- 
ation tor tliis type of work will involve mutual 
agreement in unit costs lor time, materials, and 
overhead; a final lump sum price for each discrete 
project will be negotiated in advance as each 
project is tirdered. 

I'oUowing execution of the contract, the State 
(Construction Office will publish in the North 
Crarolina Purchase Directory the list of three 
firms selected in priority order, the firm to be 
contracted with, and the fee negotiated. 

Statutory Authority G.S. 143-135.25: 143-135.26. 

SL BCIIAPTFR 30F. - STATE Bl II. DING 

COMMISSION DKSIGNKR OR CONSL L IWNT 

EV.VLL.VnON PROCEDLRES 

SECIION .0100 - GENERAL I'ROMSIONS 

.0101 .\i riioRn\ 

Ihe State Building Commission, hereinafter re- 
ferred to as SBC, is a statutory' body, empowered 
by Public Law to perfonn a multiplicity of duties 
with regard to the State's Capital Facilities de- 
velopment and management program. In the 
specific area of state capital impro\ement project 
designer and consultant evaluation, the SBC is 
empowered to develop procedures for accom- 
plislunent of such evaluation. 

Slatutoiy .iuihoriiy G.S. 143-/35.25; 143-135.26. 

.0102 POLICE 

It is the policy of the SBC to evaluate designers 
for capital improvement projects as defined in 
G.S. 143-135.27 based on criteria contained her- 
ein, burther, it is considered of paramount im- 
portance that every state capital Improvement 
project receive a professional design which is 
timely, of higliest professional quality, and in 
keeping with the project scope. It is to this end 
that indi\ idual tlc . ign e r desiener's or consultant's 
performance on state capital improvement pro- 
jects should be fairlv and consistently evaluated 
and used as a factor in designer or consultant se- 
lection for future work. 

Statutory .{utkority G.S. 143-135.25; 143-135.26. 

.0103 PEEINITIONS 

I'or purposes of this Subchapter, the following 
definitions shall applv : 
(1) "Capital Projects C.\)ordinator" means the 
indiv idual authorized b\ each funded aizencv 



to coordinate all capital improvement pro- 
jects and related matters with the State 
Con.struction Office and to represent that 
agency on all matters presented to the SBC. 
The individual so designated for purposes 
of these rules may have other titles within 
the individual's agency but shall carrv' out 
the duties assigned herein to the Capital 
Projects (.\)ordinator. Whenever the Capi- 
tal Projects Coordinator is referenced herein, 
it shall be understood to include a designated 
assistant or representative. Concerning 
evaluation of designers, or consultants the 
Capital Projects Coordinator is responsible 
for the agencv's evaluation of each phase of 
the project as vveU as the overall de f iigncr 
designer's or c(msultant's evaluation. 

(2) "Prc^ject Designer" means any individual, 
fiim, partnership, corporation, association 
or other legal entity purmiltod by ktw li- 
censed to practice architecture, engineering, 
or landscape architecture t+f '. uP i oying in the 
State of North Carolina. Ihe designer or 
consultant shall be responsible for the per- 
fonnance of all his consultants. Accord- 
ingh , the evaluation of the project designer 
will include evaluation of the work of all 
consultants who are included in the design- 
er's contract with the funded agency. 

(3) "Consultant" means anv individual, firm, 
partnership, con^'oration. association or 
other legal entity selected for planning and 
studies of an architectural and engineering 
nature associated with a capital improve- 
ment prciject. I he consultant must be li^ 
censed to practice architecture or engineering 
in the State o^. North CaTo|ina_ 

(4) (-rH "bunded .Agency" means the depart- 
ment, agency, authoritv' or office that is 
named in the legislation appropriating funds 
for the design and or construction project. 

(5) f4| "Owner s Representative" is an individ- 
ual appointed by the using agency to repre- 
sent the using agency on all user-related 
matters. Ihe owner is the representative of 
the using agency as defined in Rule .0103(9) 
of Subchapter 30D - State Building C^^m- 
mission Designer Selection Procedures. 

(6) fi)' "Professional Ser\"ices" means those ser- 
vices within the scope of the practice of ar- 
chitecture, engineering, landscape 
architecture or surveying as defined by the 
public laws of North Carolina. 

(7) {4^ "Scope Statement" means a wntten de- 
scription of the capital project that is to be 
designed. Nonnally the scope statement 
shall refiect the wntten project description 



(V.?/ 



NORTH CAROLIISA REGISTER 



PROPOSED RULES 



as cxintaincd in the project cost estimate va- 
lidated by the State (Construction OlTice. 
(S!) fj+ "i;\aluation I'orm" is the form to be 
used for all dc ^' ign e r desiizners' or c(^nsult- 
ants' evaluations. The form shall be devel- 
oped and appro\ed by the State Building 
Commission and is the only approved doc- 
ument for this purpose; it may be re- 
produced by the agencies as required. 

Slaluloty Aulhoiitv G.S. 143-64.31; 143-135.25; 
143-135.26. 

SKCTION .0200 - I'RO.IKCT IMORMATION 

.0201 PKO.IKCr DESCRIPTION 

It shall be the responsibility of each Capital 
Projects Coordinator, for each Capital Improve- 
ments project as defined in G.S. 143-135.27 re- 
quiring professional services, to pro\ ide the State 
Construction Office with a written description of 
the professional services desired, the scope of 
work, schedule requirements, amount of author- 
ized funds and other appropriate information. 
Particular emphasis will be placed on a determi- 
nation as to whether the designer's or consult- 
ant's scn.iccs are to include items such as 
programming, modeling, special presentations or 
other requirements beyond specific facility de- 
sign. This requirement data shaO be incorpo- 
rated in the designer's or consultant's 
professional services contract and will serve as 
key elements against which the dcjigner desitm- 
er's or ccmsultant's performance will be e\alu- 
ated. 

Staiuioiy Authority G.S. 143-135.25; 143-135.26. 

.0202 l)KSIC;\ COMR.ACT 

It shall be the responsibility of the Office of 
State Construction to insure that both the Capi- 
tal Projects Coordinator and the designer or 
consultant ha\e a clear mutual understanding of 
design requirements for the project and key ele- 
ments of these requirements are included in the 
professional sen'iccs contract between the agency 
and the designer or consultant. 

Slatutoty Authority G.S. 143-/35.25; 143-135.26. 

sk( hon .0300 - kv am.mion of 
i)ksi(;m.rs or consi lt.vms 

.0301 dksign pii.vses 

Definitions: 

(1) "Pre-Design Phase" is the description of the 
provision of professional ser\iccs prior to 
actual design. If a firm scope of the work 
is not known, the design agreement may be 



written in such a manner as to require pro- 
ject programming assistance by the designer 
or consultant, followed by agency approval 
of a designer-proposed project scope, prior 
to commencement of actual design. In 
evaluating design or consultant services dur- 
ing this phase, the Capital Projects Coordi- 
nator may wish to receive input from the 
Owner's representative. 

(2) "Design Phase" involves preparation of the 
actual design. Ihe Capital Projects Coor- 
dinator must maintain active inwihement 
during the design process in order to be able 
to evaluate the designer's or consultant's re- 
sponse to owner requirements, the consist- 
ency of owner requirements, external design 
requirements dri\en by insurance or envi- 
ronmental considerations, etc., the technical 
design itself, designer, owner response to re- 
view comments, adherence to design sched- 
ule, and quality of cost estimate, as well as 
adherence of the cost estimate to the project 
budget. In general, the evaluation of this 
phase is to encompass the efficiency and ef- 
fectiveness of the designer in adherence to 
the project scope statement. Included is an 
evaluation of subconsultants if utilized. The 
subconsultant peri'ormance will also be con- 
sidered in evaluation of the principal de- 
signer. The Capital Projects Coordinator, 
in preparing the evaluation of the design 
phase, may wish to receive input from the 
Owner's representative as well as the State 
Construction Office. 

(3) "Bidding-Construction Phase" encom- 
passes the process for pro\ision of profes- 
sional ser\ices for bidding, award, and 
construction of the project. As the job 
progresses past contract award, the Capital 
Projects Coordinator must maintain a con- 
tinuing awareness of designer performance 
during the period of construction including 
the shop drawing review process, payment 
processing, change order management, and 
field administration including project cost 
control. Ihe Capital Projects Coordinator 
or owner's representative should attend the 
monthly construction progress meetings. 
The Capital Projects Coordinator must be 
capable of discerning the degree to wliich 
change orders are precipitated by design er- 
rors or omissions. The Capital Projects 
Coordinator must be capable of dctcnnining 
how wcU the designer pro\idcs general ad- 
ministration of the perionnance of con- 
stniction contracts, including inspection and 
continuous liaison of the work to insure 
compliance with plans and specifications 



NORTH C.AROLIN.A REGISTER 



<S32 



PROPOSED RULES 



during the ccinstruction process. At the 
completion ot the project, the ('apital Pro- 
jects Coordinator must ensure that the pro- 
ject designer has completed all required 
close-out actions. '! he Capital Projects 
(Coordinator will be responsible for prepara- 
tion of the Bidding-Construction Phase 
c\aluation. Assistance will be souglit from 
the Owner's reprcsentati\e and the State 
Conslructiim Office in preparation of the 
e\aluation for this phase of the project. 

Slanaoiy Authority G.S. 143-135.25; 143-135.26. 

.(U()2 ()\KKAI1..K)» I'KKKOKMANCK 

The C~apital Projects Coordinator shall deter- 
mine the designer's or consultant's o\erall per- 
formance for the completed project. The overall 
rating is intended to reflect the ctTcctiveness of the 
design in achie\ing the predetermined project 
scope in a timely, cost effectise manner. The 
e\aluation shall encompass the designer's or 
consultant's management approach to the project 
mcluding cooperation of the designer's statT, 
communication with the Capital Projects Coor- 
dinator and Owner s representative, timeliness of 
action, and pertbrmance of consultants. The 
Capital Projects Coordinator shall invite input 
from the Owner's rcpresentati\e and the State 
Construction Office. All prime contractors shall 
be offered the opportunity to provide an assess- 
ment oi the designer at job completion. The 
Capital Projects Coordinator shall be responsible 
for the final o\erall rating. This summar\- eval- 
uation shall not necessarily refiect a precise nu- 
merical a\eraging of scores tor the Pre-design, 
Design, and Bidding-Construction phases but 
will be generally representative of those scores. 
To be timeh' and useful, designer e\'aluation data 
will be accumulated within 30 days of submission 
of the final report. Prior to completion of the 
final designer evaluation, the Capital I'rojects 
(Coordinator shall submit the proposed evalu- 
ation to the designer for comment. Comments 
recei\ed from designers or consultants shall be 
considered b\' the Capital Projects ("oordinator. 
.\t this stage, the (Capital Projects Coordinator 
shall prepare tlie final designer or consultant 
e\aluation and pro\ide a copy to the designer or 
consultant. The form approved by the SBC shall 
be used tor this purpose. 

Staiutoiy Authority G.S. 1 43- 135. 25: 1 43- 135. 26. 

.O.M)4 IM KKIM DKSKiNKK OK ( ONSll/T .\N [ 
K\.\I.L.VH()\ 

The designer or consultant may request prepa- 
ration of an interim e\aluation foim b\ the Ca- 



pital Projects (Coordinator or the (Coordinator 
ma\ elect to prepare an interim e\aluation if so 
desired. This interim evaluation is intended to 
refiect pertbrmance to date and should be used 
as a guidance de\'ice for correction of pertbrm- 
ance prior to the final e\alualion. 

Slatutoty Authority G.S. 143-/35.25; 143-135.26. 

.0305 SI imiSSION OF MNAI. KKI'OKI 

The Capital Projects Coordinator shall submit 
the completed final e\aluation to the Office of 
State (Construction with a copy to the designer 
or consultant. The designer or consultant shall 
ha\e the opportunity to comment on the e\alu- 
ation to the Office of State (Constaiction with a 
copy to the Capital Projects Coordinator. Such 
comments on the final e\aluation shall become 
a part of the final evaluation record. It is im- 
perative that the final designer or consultant 
e%aluation be completed and presented to the 
State (Construction OlTice for all capital projects 
within 60 days of the final report. If the e\alu- 
ation is not completed within the prescribed time 
frame, the State Building Commission may elect 
to process no further design awards for an agency 
until the e\-aluation is complete. 

Staiutoiy Authority G.S. 143-135.25; 143-135.26. 

.0306 KKI'OKI COMIMLAIION 
I'he Office of State Construction will be re- 
sponsible for maintaining designer or consultant 
evaluation data. 1 he data maintained shall be 
on an individual job basis and also cumulative 
by the designer or consultant. Data will be made 
available on request to individual designer or 
consultant preselection committees. The data 
maintained by the State Construction Office will 
refiect pertbrmance histors' for a period of fi\'e 
years. All evaluation data on completed projects 
in excess of five years of age will be removed 
from State Constrtiction Office tiles and will not 
be used as a factor in the cumulative evaluation. 

Slatuloiy Authority G.S. 143-/35.25; /43-/35.26. 

SKCnON .0400 - l'OSr-K\ All Al ION 
PKOCKin KKS 

.0402 APPF.\LS OF ASSIGNFD F^A1 CATIONS 

If a design or consultant firm considers that the 
assigned evaluation is improper and the oppor- 
tunit\ to provide rebuttal comments for the re- 
cord is insufficient to resolve the assigned rating, 
the designer or consultant ma\' appeal the rating 
to the Office of State Construction. The State 
Constnjction Office wiU appoint and convene a 
rating panel of three professional State emplovees 



,S'.?.? 



NORTH CAROLINA REGLSTER 



PROPOSED RULES 



of which at least one member is a licensed pro- 
fessional architect or engineer to hear the appeal 
and render a decision. The hearing shall involve 
at a minimum the (Capital Projects Coordinator 
and the Owner's representative as well as repre- 
sentatives of the designer or consultant who shall 
appear before the panel and which is open to the 
public. The State Construction OtTice hearing 
panel shall issue a report to the State Building 
Commission of the hearing and the decision 
reached. If the Capital Projects Coordinator or 
designer desires further recourse, the State Con- 
struction Office panel decision may be formally 
appealed to the Office of Administrative Hearings 
pursuant to N.C.G.S. 150B. 

Stalukny Authority G.S. /43-/35.25; 143-135.26. 

rm.E 4 KCONOMIC AND COMMLM i Y 
DtXKLOFMKNT 



No 



oticc /.v hereby ghen in accordance with G.S. 
1 508- 1 2 thai the North Carolina Milk Commis- 
sion intends to amend ndefs) cited as 4 SCAC 7 
.0501. 



1 he proposed effective date of this action is April 
I. 1990. 

1 he public hearing will be conducted at 10:00 
a.m. on January 9, 1990 at Roorii 3137, Dobbs 
Bldg., 430 /V. Salisbury' Street, Raleigh, AC 
276//. 



Cc 



omment /Procedures: Written comments, data, 
opinions and arguments concerning the proposed 
amendments must be submitted by .lanuary 9, 
/990, to the .\orth Carolina Milk Commission. 
430 N. Salisbury Street, Raleigh. SC 276/1. At- 
tention: Grady Cooper, ./r., Executh-e Secretaiy. 

CIIAPTKR 7 - MII.K COMMISSION 

SIXTION .0500 - MARKF.l ING 
RKGl LATIONS 



.0501 DF.FIMTIONS 

(22) "Qualitying Bascholding Producer Milk" 
means the skim milk and buttcrfat contained 
in milk of North Carolina baseholding pro- 
ducers eligible to participate in the North 
Carolina pool that is: 
(d) di\crtcd from a pool plant to a nonpool 
plant for the account of the handler de- 



scribed in Paragraph (IX) of this Rule, 
subject to the following conditions: 
(i) a baseholding producer's milk shall be 
eligible for diversion to a nonpool plant 
during any month in which such producer 
milk is physically or constructively re- 
ceived at a pool plant as follows: 

(A) in any month of August through 
February, si.\ days' production; and 

(B) in any month of iVIarch through July, 
two days' production. 

(ii) during each e4 the any month monthr . 
of the year, 
»«4 .lanuap , ! 



\ugu; . t through Ncv i L ' mber 
a«4 I'obruan-, the total 



quantity of milk diverted by a cooperative 
association shall not exceed one-fourth of 
the bascholding producer milk that such 
cooperative caused that month to be de- 
livered to or diverted from poi)l plants; or 
(iii) a handler described in Paragraph (18) 
of this Rule that is not a cooperative as- 
sociation may divert for its account any 
baseholding producer milk that is not un- 
der the control of a cooperative associ- 
ation. The total quantity of milk so 
diverted shall not exceed one-lburth of the 
milk that is physically or constructively 
received at or diverted from pool plants 
as producer milk of such handler during 
i» e ach any month of tjie \ear. i\ugui' . t 
through No' i cmbc'r ftft4 .iunuary rt«4 -Pe- 
bruaP i . 
(23) "Non-Qualifying baseholding producer 
milk" means the skim milk and butterfat 
contained in the milk of North Carolina 
baseholding producers that is not eligible to 
participate in the North Carolina pool for 
the following reasons: 
(d) ;\n\ milk diverted to ^ non-pool Grade 
A lluid milk plant shall not be included m 
the North Carolina pool, lor any vol- 
ume of milk excluded from the North 
Carolina pcml under this provision, a 
proportionate volume (M base shall be de- 
ducted by determining the percentaizc the 
milk excluded is to the total volume at 
that St aire of calculation and then applying 
this percentage to the eligible base to de- 
tennine the amount ot base to be de- 
ducted. [Similar tt) computatnins as 
outlined in Rules .051 1(a) and .05 1 2(a). j 



Statiitor}' Authority G. S. / 06- 266. 6: 
(i), (7). 



/06-266.S 



NORTH CAROLINA REGISTER 



S.U 



PROPOSED RULES 



l\ottcc is hereby gh-cn in accordance with G.S. 
I SOB- 1 2 that the Hazardous Waste Management 
Commission intends to adopt nde(s) cited as 4 
XCAC /S .0203 and amend nde(s) cited as 4 
SC AC IS .0303. 

1 he proposed effective date of this action is .April 
I. 1990. 

1 he public hearing will be conducted at 

.lamian- 3. 1990 

7:00 p.m. 

.\'.C. Wesley an College 

Student .ictriitv Center 

3400 .V. Weslevan Blvd. 

Rocky Mount. \C 27 804 

.lanuan- 4. 1990 

7:00 p.m. 

Richmond Community College Campus 

.1 uditorium 

Off Ihw. 74 east of Rockingham 

ilamlet. .\C 28345 

.lanuan- 9. 1990 

7:00 p.m. 

Winston-Salem State L'ni\ersity 

Anderson Center 

601 Martin Luther King Jr. Dr. 

Winston-Salem. .VC 27110 

.lanuarx- 10. 1990 

~:00 p.m. 

Gaston College 

.\ I vers Center .Auditorium 

'201 Hwy. 321 South 

Dallas. \C 28034 



Co 



omment Procedures: Any interested person 
may present written comments for consideration 
by the Commission. The hearing record will re- 
main open for receipt of comments from .\ovcm- 
ber ^, 1989 through .hviuaiy 11, 1990. Written 
comments should be received by the Commission 
by midnight on Januaiy II, 1990 to be considered 
as part of the hearing record. Comments should 
be addressed to: 

Ms. Cindy Trinks 

.\.C. Hazardous Waste Management 

Commission 

430 \. SalisbwT St. 

Raleigh, SC 27611 

.Any person may present oral comments at the 
hearings. Rei]uests to speak should be presented 



in writing to Ms. Cindy Trinks at the above ad- 
dress no later than five days before the date of the 
respective hearing. Additional comments may be 
allowed by the Commission by sign up at the pub- 
lic hearings as time allows. A II presentations will 
be limited to 5 minutes. A fiscal note covering 
these rules has been prepared by the Commission 
and may be obtained by written request addressed 
to .Ms. Trinks at the address above. .4 draft jus- 
tification document has been prepared bv the 
Commission in accordance with G.S. 130B- 1 1 fb I 
and may be obtained by written request addressed 
to Ms. Trinks at the address above. 
According to the procedures set out at G.S. 
1 SOB- 13, these rules were adopted as temporary 
ndes, effective Sovember 7, 1989, with a proposed 
effectri'e date as permanent ndes on April 1 , 1990. 
These rules are amendments to the cuirent tem- 
porary ndes at 4 XCAC 18 .0100 through .0300 
which are proposed to be adopted as permanent 
ndes on March 1. 1990. 

CHAPTER 18 - N.C. IIAZARDOl S WASTE 
MANAGEMENT COMMISSION 

SECTION .0200 - SITE SELECTION CKIl ERIA 

.0203 SITE LOCATION FACTORS AND 
CRITERIA 

IKis Suh^cctlon sets out rules for exeludmg sites 
based upon the factors set out in G.S. 130B-11 
which requires the Commission to consider hy- 
drological and geological factors; environmental 
and public health factors; natural and cultural 
resources; local land uses; transportation factors; 
aesthetic factors; availabLlity and reliability of 
public utilities; and availability of emergency re- 
sponse personnel and equipment in the de\clop- 
mcnt of site selection criteria. 
(1) A location shall not be selected to be placed 
upon the geological formations of Castle 
riayne; Shad\' Dolomite; and Murph_\- .Mar- 
ble, /Vndrews Fonnation and Nottcly 
Quartzite, L'ndi\ided; based upon the Geo- 
logic Map of North Carolina (printed by the 
Department of l:n\Lronment, Health and 
Natural Resources, 19S5 tdition). 
(2j A location shall not be selected to be placed 
within ten miles from the centerhne of the 
Blue Ridge Parkway. 

(3) A location shall not be selected witliin ri\e 
miles of the State boundar.'. 

(4) A location shall not be selected to be placed 
within the corporate limits. ctlecti\c No- 
\'cmber 7, 1989, of a municipality except on 
land zoned, as of No\ ember 7, 1989, to 
permit industrial uses. Corporate limits 
based upon 1988 North Carolina Depart- 
ment of Transportation maps which contain 



S35 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



1987 data submitted by the municipalities 
or 1990 pre-census maps from the United 
States Census Bureau, whichever is more 
current and complete, will be used in the 
second phase of statewide screening. 

(5) A location shall not be selected within a 
census tract based upon the 1980 data from 
the United States Census Bureau that has a 
population density greater than 500 people 
per square mile. 

(6) A location shall not be selected to be placed 
upon a general soil association type that 
floods in more than ten percent of the area 
based upon U'nited States Department of 
Agriculture General Soils Association data. 

Statutory Authority G.S. J 30B-7 (a)(5), ■ 
l30B-7(a)(24); BOB- 1 1(b); I SOB- 1 3. 

SECTION .0300 - SITE SELECTION 
PROCEDLRE 

.0303 ST.ATEWIDE SCREENING FOR 
SUITABLE SITES 

(a) The Commission shall institute a statewide 
screening process to identify suitable sites in ac- 
cordance with G.S. BOB- 11(b) and the proce- 
dures contained in tliis Rule. 

(b) The identification shall be made based on 
technical siting criteria set out in G.S. 130B-11 
and 4 NCAC 18 .0200, including meteorological 
factors, and shall use readily available data. 

(c) The statewide screening process to be used 
by the Commission is a search of the entire state 
which will be accomplished by successively 
eliminating unsuitable areas. The fu"st screening 
process will exclude general areas under the cri- 
teria set out at 4 NCAC 18 .0202. The Com- 
mission will develop other sets of site selection 
criteria which will be done througli the rulemak- 
ing procedures set out at G.S, 150B. Following 
each set of criteria, another screening process will 
be initiated to eliminate more unsuitable areas. 

(d) The second phase of the statewide screening 
process uiil exclude general areas under the cri- 
teria set out at 4 NCAC 18 .0203. These criteria 
will eliminate additional unsuitable areas as those 
set out by the cntcria at 4 NCAC 18 .0202. 

(e) Following each set of criteria and subse- 
quent screening process, the Commission will 
produce a state map shovsing the particular and 
cumulati\e effect of the elimination of unsuitable 
areas according to each set of criteria. The 
statewide screening is based upon the most recent 
and consistent data a\ailable for the entire state. 
As the ('ommission starts the investigation of 
suitable areas, there may be more detailed or 



more current information available to specific 
areas which the Commission will utili/.e. 

Statutory Authority G.S. l30B-7(a)(24); 
BOB- 1 1(b): BOB-B. 

TITLE 1 1 DEPARTMENT OF 
INSURANCE 



ly otice is hereby given in accordance with G.S. 
BOB- 1 2 that the N.C. Department of Insurance 
intends to amend rule(s) cited as 1 1 NCAC 14 
.0201 - .0202, .0409, .04 B - .0414; repeal rule(s) 
cited as II NCAC 14 .0204 - .0209. .0411 - .0412; 
and adopt rule(s) cited as II NCAC 14 .0415 - 
.0431, .0501 - .0506, .0601 - .0605 and .0701 - 
.0705. 

1 he proposed effective date of this action is April 
I, 1990. 

1 he public hearing will be conducted at 10:00 
a.m. on January 5. 1990 'at Third Floor Hearing 
Room, Dobbs Building, 430 N . Salisbury Street, 
Raleigh, N.C. 27611. 

y^omment Procedures: Written comments may 
be sent to Bob Stamey, P.O. Box 263S7, Raleigh, 
N.C. 27611. Oral presentations may be made at 
the public hearing. Anyone having questions 
should call Bob Stamey at (919) 733-5633, or 
Linda Stott at (919) 733-4700. 

CHAPTER 14 - ADMISSION REQUIREMENTS 

SECTION .0200 - FORMATION OF DOMESTIC 
INSURANCE COMPANY 

.0201 INFORMATION REQUIRED DURING 
PRE-INCORPORATION 

ProparatoP i ^ Prior to cubmir i oion the certification 
of a certificate) the articles of incorporation to the 
Office of the Secretary of State oommi '.' iion e r fof 
approval pursuant to G.S. 58-73, the following 
information must be submitted to the Commis- 
sioner for his consideration and approval: 

( 1) Biographical affidavits in the form identified 
as 1 1 NCAC 14 .0409 must be submitted for 
each promoter, incor}5orator, director, trus- 
tee, proposed management personnel or 
other person similarly situated. 

(2) A detailed and complete plan of operation 
descnbing the lines of insurance to be writ- 
ten and how the proposed company will 
perform its various functions. 

(3) {Qrf An actuarial projection of the antic- 
ipated operational results for a five-year pe- 



NORTH CAROLINA REGISTER 



856 



PROPOSED RULES 



riod based on the initial capitalization of the 
proposed company and its plan of opera- 
tion. These projections must be prepared 
by a properly qualified individual, be in suf- 
ficient detail for a complete analysis to be 
perfonned, and be accotnpanicd by a list of 
the assumptions utilized in making such 
projections. 

(4) fr^ Descnption of the source of the initial 
capitalization of the proposed company if 
other than through a public offering of pre- 
incorporation subscriptions to the capital 
stock of the company. 

(5) (-H If a public offering of pre-incorporation 
subscriptions to the capital stock of the 
proposed company is planned, the incorpo- 
rators must comply fully with the proyisions 
of Chapter 7SA, North Carolina Securities 
Act, and must provide evidence of full com- 
pliance with said Chapter 78A furnished to 
the Commissioner by the Office of the Sec- 
retary of State. 

(6) {^ Hvidencc that \^ adequate technical 
expertise, ^r^ accountina, (accounting, ac- 
tuarial, underwriting, legal, ettrr etc.) is ei- 
ther available among the incorporators and 
proposed initial staff or that the incorpora- 
tors ha\'e retained such necessary expertise 
for the operation of the company. 

(7) f6^ Such other specific information that the 
Commissioner may request which he deems 
pertinent to the organization of the pro- 
posed company. 

Statutory Authority G.S. 5S-73; 58-77. 

.0202 INFORM.VTION REQL IRED .\FTER 
ORGAMZATION MtEIING 

In accordance with the procedures established 
by G.S. 58-74, the following information must 
be submitted to the Conimissioner » proparution 
»f for approval prior to the issuance of a licenso 
certificate of authorit\' to a newly organized 
company: 

(1) A certificate of proceedings of the organ- 
izational meeting setting forth a copy of the 
CL ' rlificulL ' articles of incorporation with the 
names of the subscribers thereto; the date 
of the first meeting and of any adjournments 
thereof, certified copies of the minutes of the 
meeting, certified copies of the bylaws, an 
opening balance sheet of the corporation's 
books and records and confirmation of the 
initial capitalization funds in escrow or oth- 
erwise, for the company; and 

(2) Duly prepared and executed forms fur- 
nished by the Commissioner as follows: 



(a) check sheet and analysis of application for 
admission in the form designated as 1 1 
NCAC 14 .0414; 

(b) application for license in the form desig- 
nated as 1 1 NCAC +4 4Wtt4 UA .0404 for 
life, accident and health, and fire and cas- 
ualty insurance companies; 1 1 NCAC 44 
4Mft:? _nA .0407 for fraternal orders; and 
1 1 NCAC 44 4)40^ J_1A .0405 for hospital 
and medical service corporations; and 1 1 
NCrAC 1 lA .0406 for dental service cor- 
porations; 

(c) petition for admission to do business in 
North Carolina in the form designated as 
1 1 NCAC 44 44404^ M .0415; 

(d) power of attorney for services of legal 
process in the form designated in 1 1 
NCAC 44 4J4ttaT U .0416; 

(e) power of attorney fof Sitli* ©f to seU secu- 
rities on deposit in the form designated as 
1 1 NCAC 44 44404. U .0417. 

Statutory Authority G.S. 57-5; 5S-74. 

.0204 APPLIC.VriON FORMS: FORFIGN 

INSl RANGE COMPANIES (REPEALED) 
.0205 ANNLAL ST.VFEMEN TS: REPORTS: 

FOREIGN COMPANIES (REPEALED) 
.0206 ALTHORI/.ED LINES OF BUSINESS 

FOR A FOREIGN COMPANY (REPEALED) 
.0207 FOREIGN COMPANY MUST HAVE 

CONDLCLED SLCCESSFLL BLSINESS 

(REPEALED) 
.0208 \VAI\ ER OF THREE-YEAR OPERATIONS 

GAIN REQLIREMENT (REPEALED) 
.0209 EXCEPTION TO IN FORCE POLICY 

REQLIREMENTS: FOREIGN CO. 

(REPEALED) 

Statutory^ Authority G.S. 58-150; 58-150(1); 
58-150(2); 58-15L1. 

SECTION .0400 - DESCRIPIION OF FORMS 

.0409 BIOGRAPHICAL AFFIDAMT 

44«* affidavit concoining oducation, prior occu 
pation. bu ' jinL"j ' j oxpcriL ' nct ' *h4 r i upplumcntapy 
infunnation i^ k+ bt* L i ubmitted by each €rf the 
membL ' pj ef U+e board ef diroctor i j »h4 Ae uxcc 
utivu officors ef a company applying fof a lic e ns e 
t»- 4» bur . inL ' f . s m North Carolina. ¥^rf a Hew 
company b e ing fonned » North Carolina, tbt* 
affidavit » t« be ' . . ubmitted by each promotor, 
mcurporator. dir e ctor. trtiL . loe, propo f' cd man 
agomont pon ' Onncl t+f oth e r puri . ono ' jimilarly sit- 
uated This form includ e s uifonnalion t*ft U+e 
education, prior occupation, bu - jin e;. ;' . oxpL ' rience 

' ■ «T . 1 . A i ' -L 1 1 f »-. . 1 »-* < ■^ , u-i i 1 «1 T .1 r-n-\ ■ i f i ■ i «-\ ■ > l-t.~v t it ti^^ ■ i T T i -i it f 

A fonn used to proside information on the ed- 
ucation, prior occupation, business experience, 



Si? 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



and other supplementary information on each 
member of the board of directors and the execu- 
ti\e ()lficers of an insurance company applying 
for a license to do business in North Carolina. 
For a new insurance company being formed in 
North Carolina, this form is to be submitted by 
each promoter, incorporator, director, trustee, 
and proposed management personnel. 

Statutoiy Authority G.S. 58-73; 58-74; 58-150. 

.041 1 CFRTIFICATE OF ALTIIORFFY: IIMO 

(RFPFAFED) 
.0412 I^FOR^F\TION SHEET: FOR>F\TION 

OF DOMESTIC COMPANY (REPEALED) 

Statutory Authority G.S. 57A-3; 57A-4; 58-73; 
58-77. 

.041.3 ADMISSION DATA GLIDRFINES 

rhi ' . i information '. hoot i« fumiohod k» compa 
iw^ propo '. ing to- miik e »» applicat i on fof »«• if»- 
i4c4 liccnr .e to tran ^. act in ' juranc e bur . inL ' ^ i' i ift 
North Carolina. Fhi ;. form include ', inr . tnictions 
fof pc'rloctinij an- application fof admi^ ' jion, gon 
eft4 cm4 i . tatutoP f roquircmcnto fof admir . r . ion. 
it e m ' i te- tn* i i ubmittod, taxo;) aft4 foe* payable 
upon admir .j. ion affo other pertinent information. 

Information provided to insurance companies 
proposing to make an application for an initial 
license to transact insurance business in North 
Carolina. j-orm contains basic admission re- 
quirements and procedures for initiating an ap- 
plication for admission. 

Statutory Authority G.S. 58- J 50. 

.0414 CHECK SHEET AND ANALYSIS OF 
.VPPLICATION FOR ADMISSION 

¥b# ch e ck ' jheet aH4 analyjiii ef application fof 
admi'jijion i* ur . ed m Ae application fof the initial 
licuni . e ef a«- iny i urano e company fof t4» purpooo 
»f » check L . heet pru'riding a fet- »f itemc te- be 
submitted by t4*e coinpaiiy. +4+t* fctnn includes 
the company name, company s iid dress, fet- »f 
items te be submitted aH4 other pertinent inlor 
mution. 

A form used in the application process listing 
the items to be submitted bv an applicant insur- 
ance compan\' for review. Form mcludcs appli- 
cant compain name and address, items to be 
submitted and other pertinent inlbrmation. 

Statutoiy Authority G.S. 58-63; 58-75; 58-77. 

.0415 PETITION FOR ADMISSION 

A form used in the application process to certify 
compliance with certain basic admission require- 
ments. Form contains applicant company name, 



state of domicile, certain financial data of the 
company and other pertinent information. 

Statutory Authority G.S. 58-150(2). 

.0416 POWER OF ATTORNEY FOR SERVICE 
OF LEGAL PROCESS 

A form used in the application process to ap- 
point the Commissioner of Insurance as an ap- 
plicant company's true and lawful attorney upon 
whom processes of law against the company in 
any action or legal proceeding subject to North 
Carolina Statutes may be served. 

Statutory Authority G.S. 58-150(3). 

.0417 POWER OF ATTORNEY FOR SALE OF 
SECLRlllES 

A form used in the application process author- 
izing the Commissioner of Insurance to sell or 
transfer securities on deposit with the Depart- 
ment of Insurance as may be necessary to pay 
any legal habiUty of the applicant company. 

Statutory Authority G.S. 58-182.5. 

.0418 STANDARD QLESTIONS FOR 

APPLICANT INSLRANCE COMPANIES 

A form used to obtain basic information on the 
current operations of an applicant insurance 
company by asking a series of general questions. 

Statutory' Authority G.S. 58-150. 

.0419 MARKETING QLESTIONS FOR 
APPLICANT LIFE INSLRANCE 
COMPANIES 

A form used to obtain specific information on 
the marketing aspects of an applicant life insur- 
ance company by asking a scries of questions 
pertaining to proposed operations in North Ca- 
rolina. 

Statutoty Authority G.S. 58-/50. 

.0420 MARKETING Ql ESTIONS FOR 

APPLICANT FIRE AND CASUALTY 
INSLRANCE COMPANIES 

A form used to obtain specific information on 
the marketing aspects of an applicant fire and 
casualty insurance company by asking a series of 
questions pertaining to proposed operations in 
North Carolina. 

Statutoiy Authority G.S. 58-150. 

.0421 UNCONDITIONAL GUARANTY 

A form used by an applicant insurance com- 
pany not satisfying the successful operations ad- 



NORTH CAROLIN.i REGISTER 



S38 



PROPOSED RULES 



mission requirement to request a waiver of the 
requirement by ha\ing a qualified affiliate guar- 
antee to maintain the capital and surplus of the 
applicant company at or above the admission 
requirements of North Carolina for at least three 
\ears. This form is a legal document committing 
the affiliate to carry out such a guarantee. 

Statutoty Authority G.S. 58-/50(2). 

.0422 CORF'ORATE RESOLLTION OF 
GUARANTOR 

A fonn used by an applicant insurance com- 
pany setting forth the required resolution by the 
board of directors of a qualified alTdiate to guar- 
antee to maintain the capital and surplus of the 
applicant company at or above the admission 
requirements of North Carolina when a waiver 
of the successful operations admission require- 
ment is recjucsted. 

Statutoty Authority G.S. 5S-I50(2). 

.0423 F.LIGIBILITV RKQl IREMENTS FOR 
SI Rl'LLS LINES INSURANCE 
COMPANIES 

Information provided to insurance companies 
proposing to become eligible for the placement 
of surplus lines business in North Carolina. 
I-orm contains the basic requirements for such 
eligibility. 

Statutoty Authority G.S. 58-424. 

.0424 FILING REQUIREMENTS FOR SURPLUS 
LINES INSURANCE COMPANIES 

Information provided to insurance companies 
proposing to become eligible for the placement 
of surplus lines business in North Carohna. 
Form contains the materials to be fded for review 
to determine eligibility. 

Statutory Authority G.S. 58-424. 

.0425 Bl LLETIN 87-L-7 

This form contains general requirements for 
purchasing groups seeking to operate in North 
Carolina under the Pederal Risk Retention Act. 

Statutoty Authority G.S. 58-5l3(a). 

.0426 BULLETIN 87-L-6 

This form contains policy form and rate filing 
requirements for purchasing groups procuring 
insurance under the Federal Risk Retention Act 
from property and casualty companies licensed 
in North Carolina. 

Statutoty Authority G.S. 58-J3J.39: 58-480. 



.0427 APPLICATION FOR REGISTR.ATION 
AS A PURCHASING GROUP 

This form contains the notice of intent to do 
business and appointment of the Commissioner 
as attorney to accept service for purchasing 
groups seeking to operate in North Carolina un- 
der the Federal Risk Retention Act. 

Statutory Authority G.S. 58-512. 

.0428 APPLICATION FOR REGISTRATION 
AS A FOREIGN LIABILITY RISK 
RETENTION GROUP 

This form contains the notice of intent to do 
business and appointment of the Commissioner 
as attorney to accept ser%'ice for risk retention 
groups seeking to operate in North Carolina un- 
der the Federal Risk Retention Act. 

Statutory .Authority G.S. 58-508(1 )a. 

.0429 RISK RETENTION GROUP PLAN OF 
OPERATION 

This form contains the general requirements for 
filing a complete and quahtati\e plan of opera- 
tion or feasibility study by a risk retention group 
seeking to operate in North Carolina under the 
Federal Risk Retention Act. 

Statutory' Authority G.S. 58-50S( I )b. 

.0430 ANNUAL GROSS PREMIUM TAX 

RETURN FOR PURC1I.\SING GROUPS 

This is the form of the annual premium tax re- 
turn for purchasing groups registered to do busi- 
ness in North Carolina under the Federal Risk 
Retention Act. 

Statutory Authority G.S. 58-51 1(b). 

.0431 ANNUAL GROSS PREMIUM TAX 
RETURN FOR RISK RETENTION 
GROUPS 

This is the form of the annual premium tax re- 
turn for risk retention groups registered to do 
business in North Carolina under the Federal 
Risk Retention Act. 

Statutory' Authority G.S. 58-508(3). 

SECTION .0500 - ADMISSION OF A FOREIGN 
OR ALIEN INSURANCE COMPANY 

.0501 APPLICATION FORMS 

In addition to any infonnation required pursu- 
ant to G.S. 58-150, a foreign insurance company 
applying for admission to do business in the State 
of North Carolina is required to prepare and ex- 



S39 



NORTH CAR0UN.4 REGISTER 



PROPOSED RULES 



ecute as appropriate the forms described in 1 1 
NCAC 14 .0409 through .0422. 

Slatuloty Authority G.S. 58-150. 

.0502 ANNLAL STAIE.MKN TS, REPORTS ON 
F.XAMINATION 

Foreign insurance companies seeking admission 
to do business in North Carolina must submit for 
review by the Commissioner complete and certi- 
fied copies of the applicable annual statements in 
the form required under 1 1 NCAC 1 IB .0102 for 
the last three years preceding the date of applica- 
ticm for admission, together with the latest report 
on examination prepared by the Department of 
Insurance of the state of domicile in the form re- 
quired under 11 NCAC IIC .0102. Applicant 
companies should continue to submit such 
statements and reports in the form required as 
they become available throughout the admission 
process. 

Statutory- Authority G.S. 58-150(1). 

.050.^ AL rHORI/.KD LINES OF BUSINESS 
FOR A FOREIGN COMPANY 

A foreign insurance company seeking admission 
to do business in North Carolina can only be li- 
censed for the lines of business it has the au- 
thority to transact in its state of domicile or any 
other state in which it is licensed. 

Statutory Authority G.S. 58-150(2). 

.0504 FOREIGN COMPANY MUST HAVE 

CONDLCTED SLCCESSFl L BUSINESS 

Foreign insurance companies seeking admission 
to North Carolina must have net operational 
gains for three consecutive years next preceding 
the date of application for admission. Such ap- 
plicant companies must continue to reflect net 
gains from their operations throughout the ad- 
mission process. 

Statutoiy Authority G.S. 58-150(2). 

.0505 \V\I\ER OF niREE-YEAR 

OPERAIIONAL GAIN REQUIREMENT 

(a) The three-year operational gain requirement 
for a foreign insurance company applying for 
admission to North Carolina may be waived by 
the Department if the company meets all other 
requirements for admission and it is a subsidiary' 
of, or affiliated under a holding company system, 
as defined b\ G.S. 58-124.1, with, a licensed in- 
surance company which: 

(1) has been licensed in North Carolina for a 
minimum of ten years. 



(2) has been successful in its insurance oper- 
ations, 

(3) enjoys a satisfactory' reputation in its 
dealings with its North Carolina policy- 
holders, and 

(4) has a substantial degree of management 
control over the operations of the appli- 
cant company. 

Fhe affiliated company must guarantee to main- 
tain the capital and surplus of the applicant 
company at or above the admission requirements 
in North Carolina for a minimum of three years 
or until the applicant company can provide a re- 
port on examination which certifies three con- 
secutive years of net gains from operations, 
whichever shall last occur. The forms for making 
such a guarantee are described in Rules .0421 and 
.0422 of this Chapter. The affiliated ctimpany 
must reflect sufficient financial strength to sup- 
port such a guarantee. /Vny applicant company 
which is granted a waiver of this requirement will 
be required to place on deposit with the Com- 
missioner, in addition to any other minimum re- 
quired deposits for admission, qualified securities 
in the amount of one hundred thousand dollars 
($100,000), of the kmd and nature set forth under 
11 NCAC 1 IB .0103. 

(b) On an individual case basis, a foreign life 
insurance company may be considered for ad- 
mission if it has a minimum of one year of net 
operational gains and can provide a certified fi- 
nancial projection, prepared by an actuary, an 
actuarial firm, or a certified public accountant, 
satisfactory to the Commissioner, reflecting con- 
tinuing operational gains for at least the next 
three years. Any such financial projection must 
contain adequate details of all income and ex- 
pense items sufficient for proper evaluation. /Ml 
assumptions used in the preparation of such a 
projection must be included with the filing. Any 
applicant company which is granted a waiver 
under this provision will be required to place on 
deposit with the Commissioner, in addition to 
any other minimum required deposits for admis- 
sion, eligible securities in the amount of one 
hundred thousand dollars ($100,000) of the kind 
and nature set forth under 1 1 NCAC 1 IB .0103. 

(c) A foreign fire and/or casualty insurance 
company may be considered for a waiver of the 
successful operations admission requirement un- 
der the following conditions: 

(1) the applicant company must have been in 
business for at least five years under the 
same ultii'nate owncrsliip and writing bas- 
ically the same lines of business, and 

(2) the applicant company must have rellected 
net gains from its operations for at least 
three of the last fi\e vears, or must reflect 



NORTH CAROLINA REGISTER 



S40 



PROPOSED RULES 



verifiable total statutor>' capital and sur- 
plus in excess of fifty million dollars 
($50,000,000) in its most recent annual 
statement, and 

(3) the applicant company must provide cer- 
tification of the adequacy of its loss and 
loss adjustment expense reserves, satisfac- 
tor\' to the (Commissioner, as they pertain 
to the most recent annual statement, and 

(4) the applicant company must reflect verifi- 
able total statutory' capital and surplus in 
excess often million dollars ($10,000,000) 
on its most recent annual statement. 

An\' company which is granted a waiver under 
this pro\ision uill he required to place on deposit 
with the Commissioner, in addition to any other 
minimum required deposits for admission, ebgi- 
ble securities in the amount of five hundred 
thousand dollars ($500,000) of the kind and na- 
ture set forth under 11 NCAC IIB .0103. 

Siatutory Auihority G.S. 58-150(2); 58-182.7. 

.0506 K.XCKI'TION lO IN FORCE POLICY 
KKQl IKKMKNTS 

Pursuant to G.S. 58-151.1. every foreign life in- 
surance company applying for admission to do 
business in North Carolina must have policies in 
force upon not less than 500 lives for an aggre- 
gate amount of insurance of not less than five 
hundred thousand dollars ($500,000): however, 
to facilitate the change of domicile of a foreign 
company already licensed in North Carolina, it 
is the Department's interpretation that the new 
applicant entity will not be required to possess 
the required number of policies in force inas- 
much as all existing policies of the former li- 
censed entity will satisfy this requirement. 

Statutory Authority G.S. 58-151. 1. 

SKCTION .0600 - SLRIMXS LINES 

.0601 LIST OF Fl.ir.lHLE COMP.\NIES 

The Department shall pubhsh a list of insurance 
companies eligible for the placement of surplus 
lines business each month. The list shall be 
provided to any and all surplus lines ad\isory 
organizations for distribution to their members. 

Statutoiy Authority G.S. 58-424(b). 

.0602 REQI ESTS FOR SLRPLLS LINES 
ELKiilJILITV 

Each insurance company desiring to be placed 
on the Department's hst of eligible surplus lines 
insurers must submit a written request to the 
Department and must satisfy the requirements 
of G.S. 5S-424(a). Each compan\' should include 



with such a request a listing of the lines of insur- 
ance to be available through the company which 
are not readily available through licensed insur- 
ance companies in North Carolina. 

Statutory Authority G.S. 58-424(a). 

.0603 FIN.\NCIAL INFORM.\TION RFQLIREI) 

Each request for surplus lines eligibilit) should 
be accompanied by the following financial infor- 
mation so that verification of compliance with 
the eligibility requirements can be made: 

(1) Annual Statements for the preceding two 
years in the form required under 1 1 NCAC 
1 IE .0102 for companies licensed in at least 
one state in the Enited States. 

(2) iVnnual financial reports for the preceding 
two years in English and in E'.S. dollars for 
alien insurance companies. 

(3) A certified copy of the latest report on ex- 
amination or, if the company is not required 
to be examined by any jurisdiction, a copy 
of the latest CPA report and management 
letter. 

(4) Actuarial certification of the loss reserves 
and loss adjustment expense reser\'es for the 
most recent year if such certification is 
available. 

(5) A copy of the NAIC financial ratio (IRIS) 
results for the most recent year, along with 
an explanation for any unusual values if 
such tests are performed. 

(6) .'Mien insurers must fde a copy of their U.S. 
trust agreement. 

(7) Alien insurers must be filed with and ap- 
proved by the Non .Admitted Insurers In- 
formation Office of the National Association 
of Insurance Commissioners to be consid- 
ered for eligibility in North Carolina. 

Statuton Authority G.S. 58-424. 

.0604 RFQLIRFMFNTS FOR CONTINLED 
FLIGIBII.n^ 

(a) Once a company is deemed to be eligible 
for surplus lines business and is placed on the 
Department's list, it may remain on the list each 
month so long as it remains in good repute and 
continues to satisfy the eligibility requirements 
ofG.S. 58-424(a). 

(b) Any eligible company with total capital and 
surplus of five million five hundred thousand 
dollars ($5,500,000) or less must file quarterly fi- 
nancial statements within 45 days alter the end 
of each quarter. 

(c) .All eligible companies licensed in at least 
one state in the United States must file annual 
statements each >'ear in the fomi required under 



S41 



NORTH CAROLIN.A REGISTER 



PROPOSED RULES 



1 1 NCAC 1 Hi .0102 by March 1 of the foUowing 
year. 

(d) F'hgible ahen companies must file annual 
financial reports in Linglish and in U.S. dollars 
within six months after the close of their fiscal 
year. 

Statutory Authority G.S. 58-424; 58-426. 

.0605 DKI.KIION F ROM KI.IGIBLE COMPANY 
1, 1ST 

(a) Any eligible company found to no longer 
be of good repute or no longer satisfying the el- 
igibility requirements will be deleted from the 
Department's list if the situation is not corrected 
within 15 days. 

(b) Any eligible company may voluntarily 
withdraw from eligibility and have the company 
deleted from the Department's list by written re- 
quest. 

Statutoiy Authority G.S. 58-426. 

SECTION .0700 - FEDERAL RISK RETENTION 
ACT ENTITIES 

.0701 FOREIGN RISK RETENTION GROUP 

REc;isrRArioN 

(a) Risk retention groups chartered in another 
state and not holding a current certificate of au- 
thority issued by the Commissioner shall, before 
offering liability insurance and before fiUng a 
feasibihty study, request an application for regis- 
tration as a liabiUty risk retention group and 
guidelines for filing a plan of operation. 

(b) Risk retention groups chartered in another 
state and not holding a current certificate of au- 
thority issued by the Commissioner shall, before 
offering liabihty insurance as a hability risk re- 
tention group on any risk located in this state, 
register with the Commissioner on the form des- 
ignated in 1 1 NCAC 14 .0428 and provide the 
additional information requested on the form. 
Feasibility studies filed which are not in compli- 
ance with the plan of operation guidelines shall 
be returned without registration. 

Staiuiuiy Authority G.S. 58-508. 

.0702 PLRCII.\SING GROUP FILING 
REQUIREMENTS 

(a) A purchasing group desiring to do business 
in this state, before sohciting any member to in- 
sure througli the group any liability risk located 
in this state, shall request an application for reg- 
istration as a purchasing group. The purchasing 
group shall then furnish notice of its intent to do 
busuiess to the Commissioner on the form des- 
ioiated in 11 NCAC 14 .0427. 



(b) A purchasing group desiring to do business 
in this state must purchase insurance from a 
company licensed to do business in North Caro- 
lina or comply with the provisions of the North 
Carolina Surplus Lines Act. 

(c) Each purchasing group shall specify the 
method by which, and the person or persons 
through whom, insurance will be offered to its 
members whose risks are resident or located in 
this state. 

(d) A purchasing group desiring to do business 
in this state by complying with the provisions of 
the North Carolina Surplus Lines Act must, be- 
fore effecting coverage, designate the name and 
address of the broker licensed by the Commis- 
sioner. 

(e) All policy forms and rates for use by pur- 
chasing groups soliciting in this state must be 
filed and approved prior to their use in this state. 

Statutory Authority G.S. 58-5/2; 58-5/3. 

.0703 APPOINTMENT OF COMMISSIONER 
AS ATTORNEY TO ACCEP I SER\ ICE 

A risk retention group filing its registration to 
do business in this state and a purchasing group 
filing its notice of intent to do business as a pur- 
chasing group in this state, shall submit to the 
Commissioner with its registration or notice of 
intent a form appointing the Commissioner as its 
agent for the purpose of receiving service of legal 
process as described in 11 NCAC 14 .0427 and 
.0428. 

Statutory^ Autliority G.S. 58-508; 58-5/2. 

.0704 UPDATES AND AMENDMENTS TO 
FILINGS 

(a) Any risk retention group which has suc- 
cessfully registered with the Commissioner shall 
notify the Commissioner in writing within 30 
days of any changes in its operations which result 
in the registration then on file to contain false, 
inaccurate or misleading information, including 
the solicitation or writing of any liability insur- 
ance coverage in addition to that for w liich it has 
previously notified the Commissioner so as to 
correct such false, inaccurate or misleading in- 
formation. 

(b) /Vny purchasing group which has success- 
fully registered with the Commissioner shall no- 
tify the Commissioner in writing within 30 days 
of any changes in its operations which result in 
the registration then on tile to contain false, in- 
accurate or misleading information, including the 
solicitation or purchasing of any liabilit\ insur- 
ance coverage in addition to that for which it has 
previously notified the Commissioner, so as to 



NORTH CAROLINA REGISTER 



S42 



PROPOSED RULES 



correct such false, inaccurate or misleading in- 
formation. 

(c) Any risk retention group or purchasing 
group which has been notified of its completed 
registration by the Crommissioner shaU, on or 
before March 1 of each year, by sworn affidavit 
of the officer or party qualified and authorized to 
file an original registration or notice of intent to 
do business, certify to the Commissioner as to 
the continued accuracy of the information on file 
or amended by notice pursuant to Paragraph (a) 
or (b) of this Rule, and as to its continued intent 
to be registered and do business in this state. 

Staluton Aulhority G.S. 5S-50S; 5S-5I2. 

.0705 m.ING AND PAY.MKNT OK I'RKMIIM 
lAXKS 

(a) F'ach risk retention group registered to 
transact insurance in this state shaU file with the 
Commissioner on or before March 15 of each 
year a report of all premiums paid to it for risks 
insured within the state in the form described in 
11 NCAC 14 .0431. 

(b) All premiums paid for coserages within this 
state to risk retention groups shall be subject to 
ta.xation at the same rate and subject to the same 
interest, fines, and penalties for nonpayment as 
that applicable to surplus lines insurance. 

(c) I'ach purchasing group registered to trans- 
act insurance in this state shall file with the 
Commissioner on or before March 15 of each 
\ ear a report of all premiums paid to it for risks 
insured within the state in the form described in 
11 NCAC 14 .0430. 

(d) Taxes on premiums paid for coverage of 
risks resident or located in this state by a pur- 
chasing group or any member of a purchasing 
group shall be: 

(1) Imposed at the same rate and subject to 
the same interest, fines and penalties as 
those applicable to premium taxes on si- 
milar coverage from a similar insurance 
source by other insureds; and 

(2) Paid first by such insurance source, and if 
ncit by such source then by the agent or 
broker for the purchasing group, and if 
not by such agent or broker then by each 
of its members. 

Slalutory- Aulhority G.S. 5S-50S: 58-51 1. 

rm.i; i6 - okparimkni oi pl bmc 

KDICAIION 



Jyotice i.s hereby gh'en in accordance with G.S. 
I50B-I2 that the Stale Board of Education in- 



tends to adopt rule(s) cited a? 16 NCAC 6G 
.030/ - .0303. 

1 he proposed effective dale of this action is May 
I, 1990. 

1 he public hearing will be conducted at 9:30 
a.m. on .lanuaiy 5. 1990 at 3rd Floor Conference 
Room. Education Building, 116 West Edenton 
Street, Raleigh, NC 27603-1712. 

\^ ommcnt Procedures: Any interested person 
may present views and comments either in writing 
prior to or at the hearing or orally at the hearing. 

CHAPTER 6 - ELEMKNTARV AND 
SECONDARY EDLCATION 

SLBCIIAPTER 6G - EDLCAIION AGENCY 
RELATIONS 

SECTION .0.^00 - SCHOOL IMPROVEMENT 
AND ACCOLNTABILI rV 

.0.101 LOCAL SCHOOL IMPRON EMENT 
PLANS 

(a) Student performance goals must be stated 
in three to fi\c year goals, including annual 
milestones to measure progress toward those 
goals. The purpose of these goals is to increase 
student performance. 

(b) Satisfactory progress toward meeting stu- 
dent perfonnance goals is defined as achievement 
of 75 percent of the annual milestones listed in 
the approved local school improvement plan. 

(c) LEAs that currently meet all or most of the 
performance standards of the state accreditation 
plan must set additional locally determined stu- 
dent performance goals. In setting these goals, 
the LEA must: 

(1) establish local student performance goals 
for any remaining state accreditation per- 
formance standards that it docs not cur- 
rently meet; 

(2) establish some local student perfonnance 
goals that are higher than the performance 
standards in state accreditation; and 

(3) establish, for school years after the EEA's 
fust year of participation, student per- 
formance goals in additional curricula ar- 
eas and or in additional grade levels not 
addressed in state accreditation. 

(d) LEAs that currently meet all or most of the 
performance standards of the state accreditation 
plan may also: 

(1) develop student peribnnance goals in ad- 
ditional curricula areas not currently ad- 
dressed in state accreditation; and 



843 



NORTH CAROLIN.A REGISTER 



PROPOSED RULES 



(2) add additional indicators such as Califor- 
nia Achievement lest scores at grades 4, 
5 and 7. 

(e) The indicators that are included in the state 
accreditation performance standards, along with 
Scholastic Aptitude lest scores, are required for 
measuring and assessing student performance. 
Additional end of course and end of grade tests 
will be added to these indicators as they are de- 
veloped. 

(f) LF.As may, but are not required to include 
as indicators for measuring and assessing student 
performance and satisfactory performance factors 
such as: 

(1) post-secondary plans; 

(2) enrollment in Algebra 1; and 

(3) college cnroUees who require remediation. 

(g) I,l'y\s that develop an evaluation instru- 
ment or approach other than the teacher per- 
formance appraisal instrument must describe that 
instrument or approach in the local school im- 
provement plan. 

Statutory Authority G.S. II5C-23S.I. 

.0302 niKFF.RKMIATFD PAY 

(a) No LF,A may adopt a differentiated pay 
plan that includes an across-the-board salary 
supplement for all certified employees. 

(b) The LFA may adopt a differentiated pay 
plan that includes some, but not aU, schools 
within the LEA, only if the plan is approved by 
a majority of all certified instructional and in- 
structional support staff and of all certified ad- 
ministrators. 

(c) After an LEA that uses the school-based 
performance model for differentiated pay attains 
local school goals, the local board of education, 
upon recommendation of the principal and su- 
perintendent, shall determine which certified staff 
members contributed to the attainment of those 
goals. The LEA will then distribute differen- 
tiated pay bonuses to those employees. A 
school-based committee that participates in the 
review of bonus distribution serves only in an 
advisory role to the principal, who bears the final 
responsibility for evaluating the performance of 
certified staff and deciding whom to recommend 
to the superintendent for bonus distribution. 

(d) A school-based differentiated pay plan must 
include, at a minimum, all full-time certified staff 
in the participating schools. 

Statutory Authority G.S. II5C-23S.I. 

.0303 I I.KXIBLK I LNDING 

(a) LEAs that request a waiver of the purpose 
for which state funds may be used must submit 



a justification that shows how the waiver is nec- 
essary for the LEA to reach its local account- 
ability goals. 

(b) Fund transfers that create position from 
nonposition categories must include matching 
benefit costs. 

(c) Converting or transferring positions or 
portions of positions from varying lengths of 
employment must be on a prorata basis and at 
the beginning salary level of the original classi- 
fication. 

(d) The LEA must request specific permission 
to use funds for purposes that are not currently 
authorized. 

(e) LEAs may request to transfer positions or 
portions of positions to dollars for the purpose 
of one-time expenditures such as capital outlay, 
administrative equipment or software. 

(f) Eund transfers cannot obligate the state to 
a greater cost than the original allotment. 

(g) Waivers will not be considered or granted 
for: 

(1) teacher assistants; 

(2) matching state funds for federal vocational 
education; 

(3) transportation; 

(4) employee benefits, including annual leave 
and longevity; 

(5) group homes; 

(6) Willie \L; 

(7) developmental day care; and 

(8) all federal funds. 

Statutory Authority G.S. II5C-23S.I. 

TITLE 21 - OCCUPATIONAL LICENSING 
BOARDS 

J\ otice is hereby given in accordance with G.S. 
I50B-I2 that the North Carolina Licen.ung Board 
for General Contractors intends to amend rule(s) 
cited as 21 NCAC 12 .0204. .0503 - .0504. 

1 he proposed effecli\'e date of this action is April 
I, 1990. 

1 he public hearing will be conducted at 1 1 :00 
a.m. on January 17, 1990 at State Room, North 
Carolina State Lhmersity Faculty Club, 4200 
Hillsborough Street, Raleigh, North Carolina. 



Co 



' omment Procedures: Persons wishing to pres- 
ent oral data, views or arguments on a proposed 
rule may file a notice with the Board at least JO 
days prior to the public hearing. Any person may 
also file a written submission containing data, 
comments or arguments at any lime until 10 days 



NORTH CAROLIN.A REGISTER 



S44 



PROPOSED RULES 



after the hcariivi. Suhniis.uuns should be mailed 
10 the Board ai: P.O. Box J 7/87, Raleigh, North 
Carolina 2^61'). 

niAI'IKK 12 - I I( F.NSING BOARD FOR 

(;knkkai, (omkactors 
skcrion .0200- i icknsing kkqlirkmknts 

.0204 El.ininiLITV 

(a) Limited License. I he applicant for such a 
license must: 

(1) Be entitled to be admitted to the exam- 
ination gi\cn by the Board in light of the 
retjuirements set out in G.S. 87-10 and 
Section .0400 of this Chapter; 

(2) Be financially stable to the extent that the 
total current assets of the applicant or the 
firm or corporation he represents exceed 
the total current liabilities bv at least ten 
thousand dollars (SlO.OOO.OO). Tlus re- 
quirement shall remain in effect for all 
applications made prior to October 1, 
1990. For applications made on or after 
October 1, 1990 an applicant for a limited 
license must be financially stable to the 
extent that the total current assets of the 
applicant or the firm or corporation he 
represents exceed the total current liabil- 
ities bv at least twehe thousand, five 
hundred doUars ($12,500.00). The Board 
rescr\'es the right in its sole discretion to 
require a hcense holder to submit an au- 
dited financial statement prepared bv a 
certitied public accountant if the circum- 
stances render such submission necessar\ . 

(3) I'ossess the competenc\ and the ability, 
as revealed by the applicant's experience 
and education to engage in the practice of 
general contractmg within a specified 
classification or classifications in order to 
successfully complete a single project of a 
value of less than or equal to two hundred 
fifty thousand dollars ($250,000.00). such 
competencN' and ability being detennined 
in the sole discretion of the Board; 

(4) Successfully complete 70 percent of each 
part of the examination given the appli- 
cant b\' the Board dealing with the speci- 
fied contracting classification chosen by 
the applicant. 

(b) Intennediate License. I'hc applicant for 
such a license must: 

(1) Be entitled to be admitted to the exam- 
ination gi\en b\ the Board in liglit of the 
requirements set out in G.S. 87-10 and 
Section .0400 of this Chapter; 

(2) Be financially stable to the extent that the 
total current assets of the applicant or the 



firm or corporation he represents exceed 
the total current liabilities by at least fifty 
thousand dollars ($50,000.00) as refiected 
in an audited financial statement prepared 
by a certified public accountant; »f a 
qualified ind e p e nd e nt accountant who is 
e ngaged wt the public practice *4' accoun 
tancy; 

(3) Possess the competency and the ability as 
revealed by the applicant's experience and 
education to engage in the practice of 
general contracting within a specified 
classification or classifications in order to 
successfully complete a single project of a 
value of less than or equal to five hundred 
thousand dollars ($500,000), such compe- 
tency and ability being determined in the 
sole discretion of the Board; 

(4) Successfully complete 70 percent of each 
part of the examination gi\en the appli- 
cant by the Board dealing with the speci- 
fied contracting classification chosen by 
the applicant. 

(c) L'nlimited License. The applicant for such 
a license must: 

(1) Be entitled to be admitted to the exam- 
ination given by the Board in light of the 
requirements set out in G.S. 87-10 and 
Section .0400 of this Chapter; 

(2) Be financially stable to the extent that the 
total current assets of the applicant or the 
firm or corporation he represents exceed 
the total current liabilities by at least one 
hundred thousand dollars '($100,000.00) 
as reflected in an audited financial state- 
ment prepared by a certified public ac- 
countant; tH^ l*¥ » qualified independ e nt 
accountant ' . i i ho is engaged m t4h* public 
practice tvf accountancy; 

(3) Possess the competency and the ability, 
as re\ealed b\' the applicant's experience 
and education to engage in the practice of 
general contracting within a specified 
classification or classifications in order to 
successfully complete a single project of a 
value in excess of five hundred thousand 
dollars ($500,000), such competency and 
abihty being determined in the sole dis- 
cretion of the Board; 

(4) Successfully complete 70 percent of each 
part of the examination gi\en the appli- 
cant by the Board dealing with the speci- 
fied contracting classification chosen by 
the applicant. 

(d) Reciprocity. If an applicant is licensed as 
a general contractor in another state, the Board, 
in its discretion, need not require the applicant 
to successfully complete the wntten examination 



<SV,> 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



as provided by G.S. 87-15.1. However, the ap- 
plicant must comply with all other requirements 
of these rules to be eligible to be licensed in 
North Carolina as a general contractor. 

Statutory Authority G.S. 87-1: 87-10. 

SECTION .0500 - LICENSE 

.0503 RENEWAL OF LICENSE 

(a) Torm. An application for renewal requires 
the holder of a valid license to set forth whether 
there were any changes made in the status of the 
licensee's business during the preceding year and 
also requires the holder to give a fmancial state- 
ment for the business in question. The fmancial 
statement need not be an audited fmancial state- 
ment prepared by a certified public accountant 
ef t*y a qualified indopcndont accountant but 
may be completed by the holder of the license 
on the form itself. However, the Board reserves 
the right in its sole discretion to require a license 
holder to submit an audited financial statement 
if the circumstances render such submission nec- 
essary. Except as provided herein, the fmancial 
statement will be subject to approval by the 
Board in accordance with the requirements of 
Rule .0204 of this Chapter. 

(b) Display. The certificate of renewal of li- 
cense granted by the Board, containing the sig- 
natures of the Chairman and the 
Secretary-Treasurer, must be displayed at all 
times by the licensee at his place of business. 

Statiilony .-iuthohty G.S. 87- J; 87-10. 

.0504 INCREASE IN LI.MITATION 

(a) General. A person, firm or corporation 
holding a valid license to engage in the practice 
of general contracting in North Carolina may 
apply for a different limitation by making appli- 
cation for such different limitation with the 



Board on a form prescribed and furnished by the 
Board. 

(b) Request. A request for the required appli- 
cation form may be made at the address shown 
in Rule .0101 of this Chapter. 

(c) Form. The application form for a change 
in limitation requires the applicant to set forth 
his professional qualifications and his present and 
past experience in general contracting. An au- 
dited financial statement prepared by a certified 
public accountant »f by a qualified indopondont 
accountant who i^ ongagod m tl+e public practico 
©f accountancy is required with the application 
for change in limitation. 

(d) Eligibility. An applicant for a new limita- 
tion is eligible for the requested change if he 
possesses the qualifications for the limitation as 
set forth in Rule .0204 of this Chapter with the 
exception that such applicant shall not be re- 
quired to take a written examination. 

(e) Filing Deadline. An applicant who wishes 
to have his application considered for a change 
in limitation must fde liis application no later 
than the first day of the month preceding any 
regularly scheduled meeting of the Board. At 
such meeting the Board will consider the appli- 
cation. Regular meetings of the Board are in 
January, April, July and October of each year. 

(f) Fees. The fees for issuance of limited, in- 
termediate, and unlimited hcenses are as provided 
by G.S. 87-10. 

(g) Notice of Approval. Within two weeks af- 
ter the regular meeting of the Board in which a 
timely filed application is considered, the Board 
wd] notify the applicant of its decision. If the 
application is approved, a certification of license 
in the new Umitation wiU be issued by the Board 
and the appUcant, as of the time of notice of the 
approval, may conduct himself or itself in ac- 
cordance with the riglits available under the lun- 
itation granted. 

Statutory .Authority G.S. 87-1; 87-10. 



NORTH CAROLINA REGISTER 



846 



FINAL RULES 



1 he List of Rules (Modified is a listing of rules that were filed to be effective in the month indicated. 

fxules filed for publication in the NCAC may not be identical to the proposed text published pre- 
viously in the Register. Please contact this office if you have any questions. 

yi dopted rules filed by the Departments of Correction. Revenue and Transportation are published 
in this section. These departments are not subject to the provisions ofG.S. I SOB, .Article 2 requiring 
publication in the N.C. Register of proposed ndes. 

LJ pan request from the adopting agency, the text of rules will be published in this section. 

lunctuation, typographical and technical changes to rules are incorporated into the IJst of Rules 
Cotlifiod and arc noted as * Correction. These changes do not change the effecti\-e date of the tide. 



NORTH CAROLINA ADMINISTRATE E CODE 

LIST OF RULES CODIFIED 

DECEMBER 1989 

AGENCY ACTION TAKEN 

DFt'ARTMFNT OF AGRICLITl RE 

2 NCAC 9L .0601 - .0604 Amended 

43L .0202 Amended 

48A .0603 Amended 

.0611 Amended 

52A .0011 Adopted 

52B .0101 Amended 

.0209 Amended 

52C .0101 Amended 

.0105 Amended 

DFI'ARTMFNT OF FCONOMIC AND COMMIMTY DHNFLOPMENT 

4 NCAC IJ .0101 - .0102 Amended 

.0201 Amended 

.0301 Amended 

.0401 Adopted 

6A .0101 Amended 

7 .0501 Temp. Amended 

Expires 05-02-00 
16 * Correction 

18 .0102 Temp. Amended 

Expires 03-25-90 
.0202 Temp. Amended 

Expires 03-25-90 
.0203 Temp. Adopted 

Expires 05-06-90 
.0302 Temp. Amended 



S4 7 NOR TH CAROLINA REGIS TER 







FINAL RULES 










Expires 03-25-90 




.0303 




Temp. Amended 
Expires 05-06-90 


DKI'ARIMKNT OF COKKK.CTION 






5 NCAC lA 


.0101 


Repealed 




.0106 




Repealed 




.0201 


.0202 


Repealed 




.0301 


- .0302 


Repealed 




.0401 


.0402 


Repealed 




.0501 


.0502 


Repealed 




.0601 


.0602 


Repealed 


IB 


.0101 


.0103 


Repealed 


ic 


.0101 


.0102 


Repealed 




.0201 


.0206 


Repealed 




.0301 


.0305 


Repealed 


- 


.0401 


.0404 


Repealed 




.0501 


.05(T5 


Repealed 




.0601 


.0606 


Repealed 




.0701 


.0703 


Repealed 




.0801 


.0803 


Repealed 




.0901 


.0905 


Repealed 




.1001 


.1002 


Repealed 


ID 


.0101 


.0105 


Repealed 




.0201 ■ 


.0203 


Repealed 


IE 


.0101 


.0102 


Repealed 




.0201 


.0204 


Repealed 


2F 


.0605 




Amended 


2G 


.0201 ■ 


.0202 


Amended 




.0203 ■ 


.0205 


Amended 




.0206 - 


.0209 


Adopted 


OiriCF.S OF TIIF GOVFRNOR AND I IFl TFNANT GO\ FRNOR 



NCAC 2B Executi%'e Order Number 98 

Eff. November 3, 1989 



DFI'ARTMFNT OF MIM A\ RFSOl RCFS 



NCAC 



3B 


0110 
0603 




3D 


0101 - 


0108 




0110- 


0115 




0201 - 


0203 




0301 - 


0302 




0401 - 


0412 




0501 - 


0516 




0601 - 


0608 




0610 - 


0616 




0701 






0802- 


0807 




0901 - 


0926 




1002- 


1004 




1101 - 


1104 




1201 - 


1206 




1301 - 


1302 




1401 - 


1403 


3E 


0101 





* Correction 

* Correction 
Repealed 
Repealed 
Repealed 
Repealed 
Repealed 
Repealed 
Repealed 
Repealed 
Repealed 
Adopted 
Adopted 
Adopted 
Adopted 
Adopted 
Adopted 
Adopted 
.Amended 



NORTH CAROLINA REGISTER 



84S 



FINAL RULES 



.0105 


Amended 


.0110 


Amended 


.0112 


Amended 


.0201 


Amended 


.0206 


Amended 


.0302 


Amended 


.0304 - .0305 


Amended 


.0307 


Amended 


.0309 


Amended 


.0311 


Amended 


.0315 


Amended 


3R .0305 


Amended 


3S .0108 - .0109 


Amended 


.0208 - .0210 


Amended 


.0212 


Repealed 


.0213- .0214 


Amended 


.0307 


Amended 


.0407 - .0408 


Amended 


.0506 - .0509 


Amended 


.0614- .0617 


Amended 


.0619 


Amended 


.0706 - .0707 


Amended 


.0806 - .0808 


Amended 


.0902 


Amended 


.0904 


Adopted 


.1001 - .1004 


Amended 


.1006 


Amended 


3U .0802 


* Correction 


7C .0601 - .0602 


Temp. Amended 




Expires 04-30-90 


.0603 


Temp. Repealed 




Expires 04-30-90 


.0604 - .0608 


Temp. Adopted 




Expires 04-30-90 


ion .0304 


Amended 


14K .0315 


Amended 


14M .0602 


Amended 


.0603 


Repealed 


.0604 


Amended 


.0605 


Repealed 


.0607 


Repealed 


.0609 


Amended 


.0611 - .0615 


Amended 


.0617- .0618 


Adopted 


.0621 


Adopted 


181 .01 14 -.01 15 


Amended 


18J .0111 


Amended 


.0113 


Amended 


.0118 


i\mended 


.0711 


Amended 


18L .0429 


Amended 


.0511 


Amended 


.0704 


Amended 


.0803 


Amended 


18M .0701 


Amended 


.0707 


Amended 


.1401 


Adopted 


.1403- .1409 


Adopted 


18N .0206 


Amended 



849 NOR TH CAROLINA REGLS TER 



FINAL RULES 



18P .1004 
18Q .0123 

.0125- .0134 

.0520 

.0715 
26II .0303 
42P .0201 

.0401 - .0404 
45H .0202 
SOB .0313 

nKI'ARIMKNr Ol l\Sl RANCE 

II NCAC 14 

I)KI'AKr\IKM OF CRIMK CONTROI. A\D IM BLIC SAFETY 



Amended 
Repealed 
Repealed 
Amended 
/Vmcnded 
j'Vmcndcd 
/Vmendcd 
Amended 
Amended 
iVmended 



* Correction 



14A NCAC 1 1 



.0503 Amended 

OKPARIMFM OF EWIRONMKM, IIKAl.TII, AND NATIRAI. RFSOl RCES 



15 NCAC 2D .0101 

.0531 

.0901 

.0903 

.0912- .0913 

.0917- .0938 

.0941 

.0943 
211 .0603 
2L .0104 
3B .0907 
7B .0203 

.0204 

.0403 

711 .0308 

lOB .0212 

lOD .0003 

13 Transferred to 4 NCAC 19 
Fff. November 1, 1989 

16 Transferred to 10 NCAC 51 
Eff. November 1, 1989 

17 Transferred to 4 NCAC 20 
Eff. November 1, 1989 

I)FI'\RIMKM OF IM HMC FDl CATION 



16 



NCAC 



6G .0301 - .0303 



BOARD I OR (;KNKRAF CON IRACrORS 

21 NCAC 12 .0204 

.0503 - .0504 

BO\RD OF IM IMBING AND IIKAIING (ONIRACTORS 



Amended 
Amended 
/Vmended 
Amended 
/Vinended 
Amended 
/Vmended 
Amended 
Amended 
Amended 
Amended 

* Correction 

* Correction 

* Correction 
Amended 
Temp. Amended 
Expires 05-01-90 
Amended 



21 



NCAC 50 .1101 -.1103 



Temp. Adopted 
Expires 05-06-90 



Amended 
Amended 



Temp. Amended 
Expires 02-01-90 



NORTH CAROLINA REGISTER 



850 



FINAL RULES 



1)1 I'AR IMKM OK COMMrMTV COI I KCKS 

23 NCAC 2D .niOI Amended 
IM)I l'KM)F.N[ A(;KNCIKS 

24 NCAC ID .0501 - ,0503 Amended 

IH .0501 - .0503 /Vmendcd 



<S5 / NOR TH CAROLINA REGIS TER 



NORTH CAROLINA ADMINISTRATIVE CODE CLASSIFICATION SYSTEM 

HI Li:/MA.i()R DIVISIONS OF iin: nor ni Carolina adminisira nvi: code 

niLi: Dl PARIMKNT 

1 Administration, Department of 

2 Agriculture, Department of 

3 Auditor, Department of State 

4 F.conomic and Community Development, Department of 

5 Corrections, Department of 

6 Council of State 

7 Cultural Resources, Department of 

8 Elections, State Board of 

9 Governor, Office of the 

10 Human Resources, Department of 

1 1 Insurance, Department of 

12 Justice, Department of 

13 Labor, Department of 

14A Crime Control and Public Safety, Department of 

15 Environment, Health, and Natural Resources, Department of 

16 Public Education, Department of 

17 Re\enue, Department of 

18 Secretan, of State, Department of 
11A Transportation, Department of 
20 Treasurer, Department of State 

*21 Occupational Licensing Boards 

22 Administrati\e Procedures 

23 Community' Colleges, Department of 

24 Independent Agencies 

25 State Personnel, Office of 

26 Administrative Hearings, Office of 

NOTE: Title 21 contains the chapters of the various occupational licensing boards. 
CIIAPIER LICENSING HOARDS 

2 Architecture, Board of 

4 Auctioneers, Commission for 
6 Barber I'xaminers, Board of 

5 Certified PubUc Accountant Examiners, Board of 
10 Chiropractic Examiners, Board of 

12 General Contractors, licensing Board for 

14 Cosmetic Art Examiners, Board of 

16 Dental I Examiners, Board of 

18 lilectrical Contractors, Board of Examiners of 

20 Foresters, Board of Registration for 

21 Geologists, Board of 

22 1 learing y\id Dealers and Litters Board 
26 Landscape Architects, Licensing Board of 

28 landscape Contractors, Registration Board of 

31 \Liilial & Family I herapy Certification Board 

32 Medical Examiners, Board of 

33 Midwifcp.' Joint Committee 

34 Mortuan. Science, Board of 

36 Nursing, Board of 

37 Nursing Home Administrators, Board of 

38 Occupational I'herapists, Board of 
40 Opticians, Board of 

42 Optomctr\ , Board of lixaminers in 



NORTH CAROLINA REGISTER 852 



NORTH CAROLINA ADMINfSTRA TIVE CODE CLASSIFICA TION SYSTEM 



44 Osteopathic rxamination and Registration, Board of 

46 Pharmacy, Board of 

48 Physical I hcrapy Fxamincrs, Board of 

50 Plumbing and Heating Contractors, Board of 

52 PodiatPy' Cxaminers, Board of 

53 Practicing Counselors, Board of 

54 Practicing Psychologists, Board of 

56 Professional Fngineers and land Surveyors, Board of 

58 Real Fistatc Commission 

60 Refrigeration F.xamincrs, Board of 

62 Sanitarian Fxamincrs, Board of 

63 Social Work. Certification Board for 

64 Speech and Language Pathologists and 

Audiologists, Board of Fxaminers of 

66 Veterinary Medical Board 



,S.v? NORTH CAROLINA REGISTER 



CUMULA TIVE INDEX 



CUMULA TIVE ISDEX 

(April 1989 - March 1990) 



1989 - 1990 



Panes 



Issue 



1 - 


IS] 


1 - 


April 
April 


152 - 


192 


2- 


193 - 


216 


3- 


May 


217 - 


289 


4- 


May 


290 - 


311 


5- 


.lunc 


312 - 


364 


6- 


June 


365 - 


454 


7- 


July 


455 - 


477 


8- 


.luly 


478 - 


521 


9- 


August 


522 - 


584 


10- 


Ausust 


585 - 


616 


11- 


September 


617 - 


658 


..12- 


September 
October 


659 - 


712 


13- 


713 - 


765 


14- 


October 


766 - 


801 


15- 


November 


802 - 


825 


16- 


No\ember 


826 - 


856 


17- 


December 



AO 


- Administrative Order 


AG 


- Attorney General's Opinions 


C 


- Correction 


I R 


- Final Rule 


GS 


- General Statute 


.lO 


- .Fudicial Orders or Decision 


M 


- Miscellaneous 


NP 


- Notice of Petitions 


PR 


- Proposed Rule 


SO 


- Statements of Oruanization 


IR 


- TemporaPv' Rule 



ADMIMSIRMION 

State Construction. S27 PR 

admim-siraiim: ordkr 

Administrative Order, 4, 152, 802 

A(.RK I I IIRF 

Cotton Warehouse, 220 PR 
Markets, 217 PR, 546 PR 
Pesticide Board. 292 PR 
Plant Consenation Roard, 196 PR 
Plant Industrv, 153 PR, 218 PR 
State lair. 217 PR 



NORTH CAROLINA REGISTER 



,S54 



CUMULA TIVE INDEX 



COMMIAITY COLLIX.KS 

Board of Community Colleges, 352 PR 

CORRFXTION 

Departmental Rules, 815 FR 

Division of Prisons, 472 FR, 646 FR, 759 FR, 817 FR 

CRIMK CONTROL AM) PUBLIC SAFETY 

Victim and Justice Services, 573 PR 

CLLIl RAL RKSOIRCKS 

Archives and llistoPv', 370 PR, 455 PR, 593 PR, 720 PR 

Arts Council, 371 PR 

U.S.S. North Carolina Battleship Commission, 548 PR 

ECONOMIC AND COMMLTsH Y DEVELOPMENT 

Cemeteiy Commission, 198 PR, 766 PR 

Finance Center, 368 PR 

Hazardous Waste Manaszemcnt Commission, 716 PR, 834 PR 

Milk Commission, 455 PR, 834 PR 

Seafood Industrial Park Authority, 806 PR 

EDLCAIION 

Flementar> and Sccondan- Education, 253 PR, 295 PR, 511 PR, 739 PR, 843 PR 

ELECnONS, SIA IE BOARD OE 

Departmental Rules, 661 PR 

ENMRONMENT. HEALHI, AND NATURAL RESOURCES 

Coastal Management, 239 PR, 508 PR, 574 PR, 735 PR 

Community Assistance, 134 PR 

Departmental Rules, 601 PR 

Economic Opportunitv, 178 PR 

Environmental Manaizement, 18 PR, 160 PR, 202 PR, 238 PR, 295 PR, 347 PR, 

431 PR, 456 PR, 700 PR, 730 PR 
Governor's Waste Manasement Board, 617 C 
Manne Fisheries, 47 PRr457 PR 
Wildlife Resources and Water Safety, 134 PR, 178 PR, 207 PR, 252 PR, 574 PR, 

700 PR, 738 PR, 776 PR, 809 PR 

FINAL DECISION LET! ERS 

Voting Rights Act, 5, 193, 367, 523, 587, 618, 659, 714, 803 

FINAL Rl LES 

List of Rules Codified, 183 FR, 274 FR, 303 FR, 445 FR, 515 FR, 609 FR, 704 FR, 788 FR, 

847 FR 

GOVERNOR/LT. GOVERNOR 

Executive Orders, 1, 290, 312, 365, 478, 522, 585, 713, 826 

HUMAN RESOl RCES 

Departmental Rules, 372 PR 

Facility Ser\ices, 199 PR, 377 PR, 594 PR 

Go\emor's Waste Manatzement Board, 552 PR 

Health Ser\ices, 153 PR,\M5 PR, 405 PR, 661 PR 

Medical Assistance. 158 PR, 294 PR, 455 PR, 549 PR, 601 PR, 620 PR, 722 PR, 808 PR 

Mental Health, Mental Retardation and Substance Abuse Services, 17 PR, 417 PR, 685 PR 

Social Services, 550 PR, 773 PR 

Vocational Rehabilitation Ser\ices, 7 PR, 766 PR 



S55 NOR TH CAROLINA REGIS TER 



CUMULATIVE INDEX 



Water Treatment r'acility Operators Board of Certification, 549 PR 

im)i;pi:m)i;m aciatifs 

Housing Finance y\gency, 459 PR 

INSIRAXCE 

Admission Requirements, S36 PR 

Agent Ser\ices Di\ision, 561 PR 

Fniiincerins and Buildine Codes, 775 PR 

I-ire and Casualty Division, 202 PR, 479 PR, 6S9 PR 

I ifc. Accident and Health Division, 690 PR 

JISTICK 

Criminal Justice Fducation and Training Standards Commission, 569 PR 

Private Protecti\e Scniccs Board, 621 PR 

Sheriff's Fducation and Training Standards Division, 491 PR 

LICKVSrNG BOARDS 

Architecture, 349 PR 

CPA Fxaminers, 45S PR, 810 PR 

Flcctricai Contractors, 741 PR 

General Contractors, 512 PR, S44 PR 

Fandscape Architects, 443 PR, 756 PR 

Medical Fxaminers, 604 PR. 701 PR 

North Carolina Certification Board for Social Work, 179 PR 

Nursing, Board of, 296 PR, 778 PR 

Physical Therapy Fxaminers, 262 PR 

Plumbing and Heating Contractors, 757 PR 

Practicing I's\chologists. 606 PR 

Sanitarian Fxaminers, Board of, 785 PR 

RIAKNIF, 

Sales and Fsc Tax, 353 FR 

STATE PF.RSONAKL 

State Personnel Commission. ISl PR, 210 PR, 265 PR, 461 PR, 624 PR, 786 PR 

STA FFMFNTS OF ORGANIZATION 

Statements of Organization, 524 SO 

TRANSPORTAIION 

Division of Motor Vehicles, 140 FR, 607 FR, 648 FR 



NOR TH CAROLINA REGIS TER S56 



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Continued 



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